Kier Group PLC's ongoing cash generation, debt reduction, and improved earnings strengthened its credit metrics with adjusted funds from operation (FFO) to debt increasing to 99% in fiscal 2025 (ended June 30) from 74% in fiscal 2024. We forecast Kier will further improve its credit ratios, thanks to its growing order backlog and commitment to continue reducing net debt, and we assume FFO to debt will remain above the 60% level we consider commensurate with a 'BB+' rating, with adjusted operating cash flow (OCF) to debt also exceeding 50% over that period. We therefore raised our ratings on Kier and its outstanding £250 million senior unsecured notes to 'BB+' from 'BB'. The recovery rating on the debt remains unchanged at
