Moody's rates ICA notes Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to Empresas ICA, SAB de CV and a Ba3 rating to its proposed senior perpetual notes.

The outlook is stable.

Proceeds from the new notes will be used to refinance existing debt and for general corporate purposes, including equity contributions for new and existing projects.

The agency said ICA's Ba3 ratings are based on its leading position in the construction industry in Mexico, its long-term track record of participating in the largest construction and infrastructure projects in Mexico and the company's diversified and solid portfolio of concessions in the road, airport and water treatment sectors.

Constraining its ratings are ICA's small revenue size as compared to its global peers, limited global geographic diversity, high leverage and limited cash flow generation, Moody's said.

ICA's Moody's-adjusted debt leverage was 6.6 times for the last 12 months ended Sept. 30.

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