S&P lifts Empresas ICA

Standard & Poor's said it revised its long-term corporate credit rating on Empresas ICA SA de CV to B from B- and also raised its long-term national scale rating on ICA to mxBBB- from mxBB+.

The outlook is stable.

S&P said the ratings assigned to ICA consider the company's position as the largest engineering, construction and procurement concern in Mexico. The ratings also reflect a more favorable operating and financial performance and the improvements in ICA's capital structure and maturity schedule.

The ratings are also constrained, S&P said, by the risk of operating losses and swings in working capital associated with cost overruns that have hurt the company's financial performance and liquidity in the past. The ratings also reflect the inherent cyclicality of the construction industry and the company's dependence on government spending in infrastructure to sustain its backlog.

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