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

  • VDMA questions emissions future
    February 28, 2012
    The German construction equipment manufacturer's association, the VDMA, has stated that the new EU-exhaust emission directive presents a major challenge for its members.
    Read More
  • Strong attendance points to a successful bauma China show
    December 17, 2014
    Even heavy rain showers on the first day of the bauma China exhibition in Shanghai did not dissuade the crowds packing the outside exhibition areas - Mike Woof writes Those firms exhibiting at bauma China 2014 in Shanghai benefited from a strong show that attracted a record attendance of 191,000, an increase of 6% over the 2012 event. A wide array of new equipment was on show from the 3,104 firms exhibiting, an increase of 14% from 2012. There was a strong focus on technology and new engines required for
    Read More
  • Bitumen technology ideal for road repairs
    July 4, 2012
    Mike Woof discusses some novel developments relating to bitumen In the developed countries of Western Europe there is an increasing shift away from new highway construction to maintaining and rebuilding existing roads. In Germany alone, a network of asphalt roads extending more than 600,000km will have to be maintained or repaired. Highway maintenance techniques do vary between European countries but some commonalities exist. There are techniques that have been sidelined in the last few years but which now
    Read More
  • New innovations are being developed in diesel engines and drive technologies
    April 24, 2013
    Innovative new engine emissions control technology is coming to market - Mike Woof reports. The diesel engine sector has been one of the most active and innovative areas for technological development in the past 10 years. Engine firms have invested enormous sums in developing new, low emissions technologies that reduce the quantities of nitrous oxide and particulates from the tailpipe. All the firms have taken a different approach in this regard, using various combinations of the technologies available such
    Read More

Highlighted Content