S&P rates Enter Engineering, notes B

S&P said it assigned preliminary B ratings to Enter Engineering Pte. Ltd. and its planned eurobond offering.

“Enter Engineering's small scale and reliance on a small number of contracts are key rating constraints. Enter Engineering is a relatively small EPC contractor that does virtually all of its business in Uzbekistan, a land-locked country in central Asia. The majority of the company's current order backlog consists of projects that are part of the government's strategy to increase hydrocarbon and petrochemicals production in the country, primarily for domestic use,” S&P said in a press release.

Proceeds will be used to refinance debt, finance expansion and boost liquidity.

The outlook is stable. “The outlook is stable because we expect that Enter Engineering will continue to fulfill its order backlog in a timely manner and sign new contracts as anticipated while maintaining FFO to debt comfortably at the higher end of 20%-30% range,” S&P said.

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