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

  • The dark arts of asphalt production
    January 5, 2017
    Asphalt production is a complex process featuring many variables - Mike Varner, chief engineer at Astec Inc discussed methods with Mike Woof Asphalt production in a black art in more ways than one. It involves a complex process of mixing bitumen with aggregates under temperature and optimising this operation is crucial to maximise quality. But with so many variables, determining exactly what is going on inside an asphalt plant involves extensive research, sophisticated computer modelling and the use of a
    Read More
  • Liebherr turnover up 9.8% in 2011
    July 12, 2012
    Liebherr Group said an increase in trade with emergent markets fuelled an overall Group turnover rise of 9.8% to €8.33billion in 2011. And a Group spokesperson said they expect a further 10% turnover rise for the leading German construction machine manufacturer in 2012. Turnover from construction machinery and mining equipment recorded an above-average increase of 13.5 % in 2011, generating revenues of €5.38billion.
    Read More
  • Sandvik’s president upbeat over construction equipment market in 2013 and beyond
    January 6, 2017
    Sandvik Construction president Thomas Schulz was keen to emphasise the firm’s growing commitment to China and gave an upbeat forecast for the health of the global construction equipment manufacturing industry over the next 12 months and beyond. Speaking during Bauma China 2012, Schulz said: “The global construction equipment market has been a bit lower for the past two years. However, based on these market conditions, the performance of Sandvik in China is quite good. We have quite a positive outlook for 20
    Read More
  • Sandvik’s president upbeat over construction equipment market in 2013 and beyond
    November 27, 2012
    Sandvik Construction president Thomas Schulz was keen to emphasise the firm’s growing commitment to China and gave an upbeat forecast for the health of the global construction equipment manufacturing industry over the next 12 months and beyond. Speaking during Bauma China 2012, Schulz said: “The global construction equipment market has been a bit lower for the past two years. However, based on these market conditions, the performance of Sandvik in China is quite good. We have quite a positive outlook for 20
    Read More

Highlighted Content