Moody’s changes InfraBuild Australia view

Moody's Investors Service said it affirmed the Ba3 corporate family rating of InfraBuild Australia Pty Ltd.

At the same time, Moody's also affirmed the Ba3 backed senior secured notes rating of InfraBuild Australia.

The outlook was changed to negative from stable.

“The negative outlook reflects the weakening of InfraBuild's credit metrics and group margins heading into the coronavirus outbreak, which have left it vulnerable to shifts in construction activity and weaker ferrous and non-ferrous metals prices,” Matthew Moore, Moody's vice president and senior credit officer, said in a news release.

“The outlook also reflects our view that the company will need to execute on working capital improvements and cost reductions in order to maintain an adequate liquidity buffer to withstand a protracted downturn in steel demand and prices.”

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