Strabag grade rating maintained at BBB and Group outlook stable

Austrian construction group Strabag has maintained its Standard & Poor (S&P) investment grade rating of BBB – while also retaining its stable outlook. Explaining its decision, S&P cited Strabag’s well-diversified and vertically integrated business, its access to raw materials, and the group’s adequately high liquidity. However, S&P says Strabag is in a cyclical and intensely competitive market with high project risks and low margins. According to S&P, Strabag currently has sufficient room to manoeuvre regar
January 2, 2013 Read time: 1 min
Austrian construction group 945 Strabag has maintained its Standard & Poor (S&P) investment grade rating of BBB – while also retaining its stable outlook.

Explaining its decision, S&P cited Strabag’s well-diversified and vertically integrated business, its access to raw materials, and the group’s adequately high liquidity. However, S&P says Strabag is in a cyclical and intensely competitive market with high project risks and low margins.

According to S&P, Strabag currently has sufficient room to manoeuvre regarding the key performance indicators for the BBB- rating. The company will need this manoeuvrability, says S&P, in case the stronger price pressure in the sector leads to a short-to-medium-term deterioration of results.

For more information on companies in this article

Related Content

  • Road transport must evolve in line with users’ needs
    February 7, 2012
    At its annual plenary meeting held on 25 May 2010, during the 16th IRF World Meeting in Lisbon, the European Road Federation (ERF) elected a new President in the person of Jacobo Díaz Pineda.
    Read More
  • Think About Tomorrow Today: CONEXPO Latin America Seminars
    August 18, 2016
    The Association of Equipment Manufacturers (AEM) announces that the speaker line-up now includes Chile’s ministry of energy as well as senior thought leaders in Caterpillar, Cummins, Telogis and Americas Market Intelligence. They’ll join keynote speaker Derek Woodgate of the Futures Lab, who is helping guide development of The Tech Experience at CONEXPO-CON/AGG 2017. Equipment manufacturers and contractors, large and small, face uncertain times. With construction markets still sluggish but showing sig
    Read More
  • Hungarian highway dispute for STRABAG
    April 14, 2015
    Austrian contractor STRABAG is facing a major challenge with regard to a highway project in Hungary. The Hungarian Government has decided to halt construction work on the M4 highway. STRABAG was working on the €106 million project to build the new highway. In addition, the Hungarian Government has further complicated the challenges faced by STRABAG and sub-contractors working on the project by calling for any subsidies given out so far to be repaid.
    Read More
  • VDMA reports on construction machine business
    August 2, 2016
    The German construction equipment manufacturing association reports wide variations in business activity across different markets. Overall, the VDMA reports that for construction equipment, the 2016 growth forecast remains at over 3%. According to the VDMA, German construction equipment manufacturers remain cautiously optimistic at the middle of the year. “After a great bauma trade fair in April we are again in the midst of our daily business – which holds a number of challenges and uncertainties,” said
    Read More

Highlighted Content