S&P upgrades Webuild

S&P said it raised its ratings on Webuild SpA and its senior unsecured notes to BB from BB-. The recovery rating on the notes remains 4.

“The upgrade reflects Webuild's improved financial risk profile. Webuild's credit metrics significantly improved in 2022 and we expect further progress in 2023-2024. In 2022, FFO to debt jumped to 22.8%, from 8.1% in 2021 when the group's profitability was affected by several negative one-offs related to the pandemic. In 2023-2024, we anticipate that FFO to debt will be about 30%. Most of the improvement is due to higher revenue as a result of significant new business gained; revenue rose by a sizable 26% in 2022, and we anticipate a further 13% rise in 2023 and 8% in 2024, significantly outperforming GDP growth,” S&P said in a statement.

The agency noted Webuild’s backorders cover most of its 2023-2025 target revenue.

The outlook is stable.

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