...- We anticipate that Webuild's credit metrics will significantly improve in 2023-2024, reflecting increased revenue and profitability and better cash flow management. In our base-case scenario for the ratings, we assume that our key credit metric, funds from operation (FFO) to debt, will be about 30% in 2023-2024, compared with 22.8% in 2022. - We believe that Webuild's improved financial risk profile is sustainable, since it is driven by the company's strategic priority to reduce risk by increasing its presence in low-risk countries and improving profitability and working capital management, also through increasing reliance on contract standards that allow easier cost pass-through, as shown with the recent Snowy 2.0 project reset. - Still, we assume that over 2023-2025, a large part of Webuild's operating cash flow will finance its capital investments to support its business growth, particularly in Italy and Australia. As such, we anticipate limited gross debt reduction over the next three...
