S&P Revises ICA Outlook to Positive

S&P has revised the outlook of Mexican construction company Empresas ICA to positive from stable and affirms the BB minus rating. The improved outlook reflects the company’s adequate performance, resulting from projects the company was awarded in 2009 and Q1, despite a more challenging economic environment in Mexico. S&P expects ICA’s credit measures to improve during the next couple of years thanks to a likely increase in revenue of about 15% per year. For the 12 months ended March 31, ICA posted Ebitda interest coverage, total debt-to-Ebitda and funds from operations-to-total debt rations of about 2.7x, 5.3x and 9.9%, respectively, versus 2.4x, 5.2x and 16.7%, respectively during the corresponding period in 2008, says S&P.