S&P cuts MasTec ratings

Standard & Poor's said it lowered its corporate credit rating on MasTec Inc. to B from BB-, its senior secured bank loan rating to B+ from BB, and its subordinated debt rating to CCC+ from B.

At the same time, all ratings remain on CreditWatch with negative implications, where they were placed on March 17.

S&P said the downgrade follows MasTec's announcement of a net loss for the 2004 first quarter that is significantly greater than the year-earlier loss as well as a delay in its form 10-Q filing for the first quarter because of an unfinished audit for full-year 2003.

Market conditions in the specialty contractor industry are weak, resulting in declining margins and higher leverage. S&P said it continues to be concerned about the breakdown of certain financial controls and policies, the length of time it is taking to complete the 2003 audit, and the liquidity profile, including obtaining a waiver or amendment to bank covenants.

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