Moody’s: Empresas ICA view to negative

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

About $1.35 billion in rated debt instruments is affected.

Moody’s said the outlook change was prompted by Empresas ICA's weaker than expected operating performance and more challenging market conditions in the Mexican construction industry. Moreover, further budget cuts to the National Plan for Infrastructure estimated for 2016 will affect ICA's ability to incorporate new contracts in its construction backlog.

The negative outlook also takes into account the agency’s belief that upcoming construction projects, when announced, will take some time to materialize in terms of cash inflows to Empresas ICA given the lengthy drafting and bidding process usually related to large infrastructure projects.

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