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

  • PPRS Nice 2018: maintenance moves mountains
    June 22, 2018
    Strategic maintenance was a major theme at the second Pavement Preservation and Recycling Summit in Nice, France. The world is changing, mobility is changing and so roads must change and adapt for the future.” With this brief statement, Jacques Tavernier opened the second PPRS Summit. “At the same time there is a growing awareness of poor or non-existent maintenance for highways. The question for this conference is how to adapt road maintenance in the face of this challenge,” said Tavernier, in his role as
    Read More
  • New excavators and wheeled loaders for earthmoving market
    October 28, 2016
    Manufacturers are continuing to develop new excavators and wheeled loaders offering increased performance - Mike Woof writes. New developments are being seen in both the wheeled loader and excavator markets. Caterpillar, Daewoo, Hitachi, Hyundai, Komatsu, Kobelco and Volvo CE all have new wheeled loader or excavator models now available. The segment for wheeled loaders has seen particular innovation from Caterpillar, with different machines being introduced for tightly regulated and lesser regulated mark
    Read More
  • Uruguay’s transport investment is seeing major gains
    August 1, 2017
    Uruguay’s road development programme will help deliver economic growth for the future - Gordon Feller reports. Uruguay is embarking on a new nationwide programme to rehabilitate 890km of roads, and the government intends to improve an additional 260km of dangerous highways and roads. This three-year programme aims to reduce traffic accidents, in part thanks to a US$70 million loan recently authorised by the World Bank’s board of directors. The new operation uses a special financing instrument known as “Prog
    Read More
  • The use of telematics in construction machines is growing
    May 20, 2015
    Demand for telematics technology is growing, as equipment users begin to lean the value of these systems – Alan Dron reports With construction projects increasingly operating to wafer-thin profit margins, any technological assistance that can keep the accounts in the black is welcome. This is particularly the case with those projects where contractors can share a larger slice of the profits if they complete their work ahead of schedule. The downside, of course, is that they also share the pain if the
    Read More

Highlighted Content