S&P rates Salini Impregilo notes BB+

S&P said it affirmed its BB+ long-term corporate credit rating on Salini Impregilo SpA.

The outlook is stable.

At the same time, the agency assigned its BB+ issue rating and 4 recovery rating to the proposed senior unsecured unguaranteed notes of up to €500 million. The recovery rating indicates expectations of recovery prospects in the lower half of the 30%-50% range in the event of a payment default.

S&P also affirmed its BB+ and 4 issue and recovery ratings on Salini's existing €400 million senior unsecured unguaranteed notes maturing in 2018, based on the assumption that about €200 million of these notes will be refinanced with the new notes. The recovery prospects are in the higher half of the 30%-50% range.

Salini's operating performance in 2015 was roughly in line with S&P’s expectations, and it expects the company to continue posting resilient results over the next few years. This mainly reflects the agency’s forecast that Salini will generate organic revenue growth of more than 10% annually, on the back of solid demand for infrastructure and a large backlog that will provide strong revenue coverage.

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