Moody's rates ICA notes B2

Moody's Investors Service said it assigned a B2 rating to the proposed up to $600 million of guaranteed senior notes due 2019 to be issued by Empresas ICA, SAB de CV and guaranteed by its principal operating subsidiaries. The outlook is negative.

Proceeds will be primarily used to repay short-term debt and to pay the tender offer for $150 million of the company's $350 million global notes due in 2017.

The agency said ICA's B2 ratings are based on the company's weak credit metrics related to debt leverage and interest coverage as well as weak liquidity. The ratings also factor ICA's high dependence on short-term bank debt renewals as well as asset sales to fund operations and committed equity injections to its portfolio of concessions.

Supporting ICA's ratings are its leading position in the construction industry in Mexico, its long-term track record of participating in the largest construction and infrastructure projects in the country and the company's diversified and solid portfolio of concessions, Moody's said.

The agency said the negative outlook reflects the current weak operating performance in the construction business given the low number and aggregate peso amount of infrastructure projects sponsored by the Mexican government so far in 2013.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.