Moody's changes Saipem view to negative

Moody's Investors Service said it changed the outlook on Saipem SpA to negative from stable. Concurrently, the agency affirmed all its Saipem ratings, including its Ba2 corporate family rating and all the ratings of its subsidiary Saipem Finance International BV. Moody's also assigned negative outlook to the Saipem Finance.

The outlook mirrors a significant underperformance of Saipem's EBITDA generation in the second quarter 2021 compared to the agency’s forecast, driven by execution challenges in one off-shore wind project in North Sea as well as further postponement of certain projects that were in backlog for 2021, the agency said.

“Moody's sees a risk that in the second half of this year Saipem will not be able to generate sufficient EBITDA to offset the sizeable €354 million EBITDA loss in the second quarter (as defined and adjusted by Saipem), leading to a further meaningful reduction of the company's EBITDA generation in 2021 compared to the already rather depressed 2020 level,” the agency said in a press release.

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