S&P downgrades Tutor Perini

S&P said it lowered its issuer credit rating on Tutor Perini Corp. to B+ from BB-. The outlook is stable.

At the same time, the agency lowered the issue-level rating on the company's $500 million senior unsecured notes due 2025 to B+ from BB-. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

In addition, S&P lowered the issue-level rating on the company's $200 million senior unsecured convertible notes due 2021 to B- from B. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default.

“The downgrade reflects Tutor Perini's weaker-than-expected operating performance, partly due to project delays,” S&P said in a news release.

“Tutor's adjusted debt-to-EBITDA metric was 3.8x for the last 12 months ended June 30, 2018, and we do not expect a significant improvement over the next year.”

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