S&P ups Tutor Perini

S&P said it upgraded Tutor Perini Corp. to B+ from B, its term loan to BB from BB- and its unsecured notes to B- from CCC+. The term loan’s 1 recovery rating indicating very high (90%-100%; rounded estimate: 95%) recovery in default and the notes’ 6 recovery rating indicating negligible (0%-10%, rounded estimate 5%) recovery in default are unchanged.

Better than expected operating performance in 2020 led to the assumption Tutor Perini maintains its improved credit measures through 2021, helped by a backlog of large civil infrastructure projects on the West Coast and other projects in Guam, S&P said.

“However, this will be offset by certain large civil projects in the Northeast completing or nearing completion in 2021. We anticipate earnings weighted more heavily in the second half of 2021 due to the timing of large project activities, as well as typical business seasonality, as in previous years,” the agency said in a press release.

The outlook is stable.

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