S&P cuts Cimic

S&P said it downgraded Cimic Group Ltd. and its issue ratings to BBB- from BBB and removed the ratings from CreditWatch with negative implications where they were placed on Oct. 21.

The downgrade and watch removal follow similar actions on Cimic’s parent Actividades de Construccion y Servicios SA on Tuesday.

S&P attributed the downgrade to Cimic’s weak performance in fiscal 2020 and the sale of 50% of its mining services subsidiary Theiss. “As a result, we project CIMIC's adjusted leverage (S&P adjusted debt to EBITDA) will likely exceed 2.5x in the fiscal year ending Dec. 31, 2021, and remain above 2x in the next two years,” the agency said in a press release.

The outlook is stable.

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