Fitch ups Infrastructure and Energy Alternatives

Fitch Ratings said it raised the issuer default ratings of Infrastructure and Energy Alternatives, Inc. and IEA Energy Services LLC each to B from B-. Fitch also upgraded the long-term ratings on the company's senior first-lien secured term loan and revolver to BB/RR1 from BB-/RR1.

“IEA's ratings and outlook reflect the company's improving EBITDA margins, positive FCF, strong position in niche markets, and increasing diversification. Fitch also considered the improving economics of renewable energy, as well as management's focus on better contract terms with customers,” the agency said in a press release.

“Fitch considers IEA's leverage (gross debt/EBITDA) to be very strong for a B category engineering and construction (E&C) company, and one of the main drivers of the rating upgrade. Fitch views the company's actions of paying down a material amount of its outstanding debt as a prudent way to offset and manage future execution risks,” Fitch said.

The outlook is stable.

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