Summary: Salini Impregilo SpA

Wide geographic diversification, with a strengthened position in the U.S. after buying Lane. Positive prospects in the U.S. infrastructure market. Sizable and growing order backlog that provides good earnings visibility. Substantial exposure to high-risk regions, namely South America and Africa. Exposure to the cyclical, low-margin construction business. Limited flexibility from the company's credit ratios at the current rating level. Limited free operating cash flow generation, owing in part to high capital expenditures. Adequate liquidity Supportive financial policy framework. The stable outlook on Salini Impreglio SpA reflects S&P Global Ratings' view that the company's adjusted funds from operations (FFO) to debt will stand at 31%-32% in 2017 and improve to 35%-37% in 2018. The company's solid order backlog provides very high

...Outlook The stable outlook on Salini Impreglio SpA reflects S&P Global Ratings' view that the company's adjusted funds from operations (FFO) to debt will stand at 31%-32% in 2017 and improve to 35%-37% in 2018. The company's solid order backlog provides very high visibility on revenues and EBITDA in 2017-2018, reducing risk. However, rating headroom in 2017 is still limited and will likely remain so until 2018, because of Salini's increased leverage after acquiring Lane in 2016. We expect Salini will maintain a moderate dividend distribution policy, with a pay-out ratio not exceeding 40%....

Summary