S&P: Empresas ICA notes at B+

Standard & Poor's said that it assigned Empresas ICA SAB de CV's (BB-/stable) proposed 10-year senior notes issuance of up to $400 million a B+ long-term rating with a 5 recovery rating, indicating the expectation of modest (10%-30%) recovery in the event of a payment default.

Proceeds will be used to pay down existing debt and for future investments in infrastructure concessions and construction projects, as well as to provide additional capital to current investments.

The new tenor on the proposed notes and the issuer's project-finance debt continue to provide ICA a manageable maturity schedule, S&P said.

The rating reflects the company's aggressive financial profile, the inherent cyclicality of the construction industry in Mexico and ICA's dependence on the Mexican government and private-sector infrastructure spending to sustain its backlog, the agency said.

The ratings benefit from ICA's fair business profile and its being the largest engineering, procurement and construction company in Mexico, S&P added.

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