S&P keeps Astaldi on watch

S&P said it maintained its CreditWatch with negative implications on the B long-term corporate credit rating on Astaldi SpA.

The B issue rating on the company’s €750 million senior unsecured notes remains on CreditWatch negative. The recovery rating remains unchanged at 4.

S&P said its decision to keep Astaldi's ratings on CreditWatch with negative implications follows a continued outflow of working capital in the second quarter of 2016, contrary to previous expectations that the position would improve.

In the agency’s view, Astaldi's liquidity remains vulnerable to cash outflows and could further deteriorate over the short-term, unless the working capital position improves in the third quarter.

At the same time, S&P noted that in July the company successfully reset its financial covenants to a more comfortable level.

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