Salini Impregilo has completed a €600 million capital increase to acquire a stake in Astaldi and strengthen its balance sheet, which we believe could lead to a substantial decrease in financial leverage. We also believe the completion of the capital increase implies a favorable environment for the refinancing of Salini Impregilo's €600 million unsecured bond due 2021. We are therefore revising our outlook on Salini Impregilo to positive from negative and affirming our 'BB-' ratings on the company and its two bonds. The positive outlook indicates that we could upgrade the company during the next 12 months if debt reduces as we anticipate, with funds from operations (FFO) to debt rising beyond 20%, alongside consistently positive free operating cash flow
