Salini Impregilo reported sluggish operating cash flow generation in 2017, and has revised downward its 2018-2019 financial targets. The group's S&P Global Ratings' adjusted financial leverage for 2017 was significantly lower than we expected, and we anticipate that funds from operations (FFO) to debt will remain below 30% in 2018-2019, which would not be commensurate with a 'BB+' rating. We are therefore lowering our long-term rating on Salini Impregilo to 'BB' from 'BB+', and removing it from CreditWatch with negative implications. The stable outlook reflects our view that the company's adjusted FFO to debt should recover to the 26%-28% range in 2018-2019. On May 8, 2018, S&P Global Ratings lowered its long-term issuer credit rating on Italian construction company Salini
