Salini Impregilo SpA 'BB-' Ratings Placed On CreditWatch Negative On Disappointing Operating Cash Flow

Italian construction company Salini Impregilo recently published its 2019 annual results, and posted operating cash flows that were weaker than our expectations. The COVID-19 epidemic increases uncertainty on projects' operations and working capital performance in 2020. We are therefore putting our 'BB-' ratings on Salini Impregilo on CreditWatch with negative implications. We aim to resolve the CreditWatch in the coming months, once we have more visibility on Salini Impregilo's working capital path--including the company's ability to collect delayed payments--and on COVID-19's effect on the company's operations. PARIS (S&P Global Ratings) March 24, 2020-- S&P Global Ratings today took the rating actions listed above. We aim to resolve the CreditWatch in the coming months once we have more visibility on Salini

...March 24, 2020 - Italian construction company Salini Impregilo recently published its 2019 annual results, and posted operating cash flows that were weaker than our expectations. - The COVID-19 epidemic increases uncertainty on projects' operations and working capital performance in 2020. - We are therefore putting our '##-' ratings on Salini Impregilo on CreditWatch with negative implications. - We aim to resolve the CreditWatch in the coming months, once we have more visibility on Salini Impregilo's working capital path--including the company's ability to collect delayed payments--and on COVID-19's effect on the company's operations. PARIS (S&P Global Ratings) March 24, 2020-- S&P Global Ratings today took the rating actions listed above. Salini Impregilo reported negative free operating cash flow (FOCF) in 2019, after considering extraordinary cash-outs related mainly to Panama advances reimbursement and tax items. Most of Salini Impregilo's cash absorption stems from adverse working...

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