S&P lifts Saipem view to stable

S&P said it revised the outlook on Saipem to stable from negative and affirmed the BB+ ratings on Saipem and its debt instruments.

The stable outlook reflects the company's ability to further build headroom under the rating on the back of early signs of recovery in the industry, the agency explained.

Saipem's financial performance has improved in recent quarters with an increased backlog despite continued relatively weak market conditions, S&P said.

The agency said it now takes a more positive view on Saipem's ability to maintain financial performance over the next few years.

Saipem is expected to continue landing new projects with good visibility on the next two years of profits, while limiting capital expenditure and potential working capital outflow, S&P said.

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