Fitch rates Webuild notes BB

Fitch Ratings said it assigned Webuild SpA's planned maximum €500 million five-year notes an expected senior unsecured rating of BB.

The rating is aligned with Webuild's long-term issuer default rating and existing senior unsecured notes rating. The outlook on the IDR is stable.

The BB IDR and stable outlook, which was last affirmed on July 5, 2021, reflects Webuild's improved financial profile, driven by a recent reduction in net debt, expected significant free cash flow generation in 2021-2022 and solid growth prospects for the medium term, Fitch said in a news release.

The rating is constrained by Webuild's high leverage.

“Its currently high leverage is only partly offset by its solid business profile, which we view as being in line with an investment-grade rating. However, we expect better operating performance to help improve the leverage profile to a level that is commensurate with the current rating,” Fitch said in the news release.

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