S&P lowers Empresas ICA

Standard & Poor’s said it lowered the global scale corporate credit rating on Empresas ICA SAB de CV to B from B+.

S&P also said it lowered the global scale issue-level rating on the company’s senior unsecured notes to B- from B. The recovery rating of 5 on the notes, indicating 10% to 30% expected default recovery, is unchanged.

The agency also said it affirmed the mxBBB- national scale corporate credit rating on ICA and revised its outlook to stable from negative.

The downgrades reflect the company’s slower debt-reduction pace than previously expected, which resulted in weaker financial credit metrics, S&P said.

The company has a competitive business scale and leading market position within the Mexican engineering and construction sector, the agency said.

The inherent cyclicality of the construction industry, geographic concentration of its markets and substantial dependence on Mexican government spending mitigate these strengths, S&P said.

© 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.