Research Update: Webuild S.p.A. 'BB-' Ratings Affirmed And Taken Off CreditWatch On Expected Credit Metrics Improvement; Outlook Stable

Webuild S.p.A. (formerly Salini Impregilo S.p.A.) generated material free operating cash flow (FOCF) and decreased its net debt in second-half 2020, which mitigated a decline in EBITDA. The company also progressed on its integration of Italy-based construction company Astaldi S.p.A. and refinanced its bonds due 2021. As construction projects gradually resume, we anticipate funds from operations (FFO) to debt of about 17%-18% in 2021-2022, which we believe is commensurate with the 'BB-' rating. We are therefore affirming our 'BB-' long-term issuer credit rating on Webuild S.p.A., and removing it from CreditWatch, where it was placed with negative implications on March 24, 2020. The stable outlook reflects our expectations that Webuild will post FFO to debt of about 17%-18% in 2021-2022,

...- Webuild S.p.A. (formerly Salini Impregilo S.p.A.) generated material free operating cash flow (FOCF) and decreased its net debt in second-half 2020, which mitigated a decline in EBITDA. - The company also progressed on its integration of Italy-based construction company Astaldi S.p.A. and refinanced its bonds due 2021. - As construction projects gradually resume, we anticipate funds from operations (FFO) to debt of about 17%-18% in 2021-2022, which we believe is commensurate with the '##-' rating. - We are therefore affirming our '##-' long-term issuer credit rating on Webuild S.p.A., and removing it from CreditWatch, where it was placed with negative implications on March 24, 2020. - The stable outlook reflects our expectations that Webuild will post FFO to debt of about 17%-18% in 2021-2022, while integrating Astaldi without major hinderance or cost overruns....

Research Update