S&P upgrades Salini Impregilo

Standard & Poor’s said it raised the long-term corporate credit rating on Salini Impregilo SpA to BB+ from BB.

The outlook is stable.

The agency also said it revised the rating on Salini Impregilo’s €400 million senior unsecured notes due 2018 to BB+ from BB-.

The recovery rating on the notes is 4, indicating 30% to 50% expected default recovery.

The upgrades reflect a view that Salini Impregilo should achieve stronger credit ratios than previously expected because of supportive market trends, large backlog of orders and reduced interest expenses, S&P said.

The agency said it calculates that the company will grow its EBITDA by 10% to 15% annually over the next two years on the back of a strong demand for infrastructure and a large order backlog.

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