Moody’s changes Empresas ICA to stable

Moody's Investors Service said it changed Empresas ICA, SAB de CV’s rating outlook to stable from negative and affirmed the B2 corporate family and senior unsecured debt ratings.

The outlook change was prompted by our expectation of a recovery in the construction industry fundamentals, along with the refinancing of ICA’s short-term debt and the gradual improvement in its credit metrics.

Moody’s said it believes that the lower leverage level of 6.8 times as of Sept. 31 (from 11.6 times in Dec. 31, 2012) could be temporary, reversing as the company's construction activity reactivates. However, the agency doesn't foresee a material deterioration in ICA's credit profile over the next quarters, given the company's focus in reducing debt with proceeds from assets sales and its leverage target of consolidated reported net debt/EBITDA of 5 times.

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