S&P upgrades MasTec

Standard & Poor's said it raised the corporate credit rating on MasTec Inc. to BB from BB-.

The outlook is stable.

The agency also said it raised the senior unsecured issue-level ratings to BB-. The recovery rating remains a 5, reflecting 10% to 30% expected recovery in a default.

The upgrade reflects a view of MasTec's improved prospects for cash generation from a return to double-digit EBITDA margins over the next two years, backed by a supportive financial policy, S&P said.

Despite an expectation for small- to medium-sized acquisitions, management's stated financial policy will result in credit measures commensurate with the BB rating, the agency said.

The ratings consider the company's significant financial risk profile and its weak business risk profile, reflecting its exposure to cyclical end markets and significant customer concentration, S&P added.

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