S&P lowers MasTec to stable

S&P said it revised the outlook on MasTec Inc. to stable from negative and affirmed its BB corporate credit rating.

The agency also said it affirmed the BB- rating on the company's $400 million senior unsecured notes due 2023. The 5 recovery rating is unchanged, indicating 10% to 30% expected default recovery.

The outlook revision reflects the rebound of MasTec's operating performance despite the challenging conditions the company faced in 2015, S&P said.

The company benefitted from strong demand in its communications segment as the increased use of wireless and wireline data and ever expanding speed requirements have led to an increase in spending on long-term network upgrades, the agency said.

Additionally, the demand for MasTec's services on U.S. oil and gas long-haul pipeline projects has been strong and demand for these services will remain elevated for several years, S&P said.

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