S&P puts Empresas ICA on positive watch

Standard & Poor's said it placed Empresas ICA SA de CV's B long-term corporate credit rating on CreditWatch with positive implications because the agency believe an upgrade is likely after it completes a review of Empresas ICA's financial policy and liquidity prospects.

The ratings assigned to Empresas ICA consider the company's position as the largest engineering, construction and procurement concern in Mexico, the agency said. The ratings reflect more favorable operating and financial performance and the improvements in the group's capital structure and maturity schedule.

S&P said the ratings also reflect the inherent cyclicality of the construction industry, the company's dependence on government spending in infrastructure to sustain its backlog and operating losses and swings in working capital associated with cost overruns that have hurt the company's financial performance and liquidity in the past.

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