Webuild S p A : S&P affirmes BB- rating and takes of credit watch; outlook stable

The decision follows the Group's material cash generation, and the reduction of net debt, despite the pandemic

The Group's consolidation strategy in the Italian market deemed positive, thanks to Progetto Italia, and its de-risking strategy on global markets

Solid growth prospects, with an increase in the Group's profitability, and with entry into the infrastructure maintenance sector

Milan, April 27, 2021 - Webuild strategy for its consolidation in the Italian market, Group's financial structure at year end 2020, despite the global pandemic, and its future growth strategy drove S&P decision to positively resolve the credit watch negative attributed to the Group in March 2020, confirming the rating with a stable outlook. The rating agency's decision follows the Group's material cash generation, in 2020, which made it possible to reduce the net debt, in a period where Webuild was able to guarantee the operational continuity of the construction sites and unblock strategic projects such as Verona-Padua high-speed train, and the Genoa railway junction.

The Group's positioning in Italy was also rated positive thanks to Progetto Italia, the consolidation operation in the country's infrastructure sector. The Group, said S&P, continued the process of integration with Astaldi, a key milestone in the company's strategy of consolidating the Italian construction market. Furthermore, with the latest bond issues, Webuild also refinanced the bond maturing in 2021, and has limited debt maturities until mid-year 2022. The rating agency also highlighted the recovery of Webuild's bonds in the secondary market.

Supporting the Group's rating, explained S&P, is also Webuild's strategy of focusing on low-risk countries, like North America, Australia and Western Europe, besides progressively reducing its concentration of revenues in a few projects. According to the agency, the Group's growth prospects are solid - the Group has, in fact, a construction backlog of approximately €33 billion, covering most of the revenues over the next two years. Webuild is also working to enter the maintenance business in Italy, which could lead to greater diversification, and dimensional scale for the Group.

Webuild, said the agency, is also well positioned to benefit from the investments of economic recovery plans (e.g. Recovery Fund) in Europe and the US. for 2021-2022. In fact, S&P expects an increase in the Group's profitability, partially impacted in 2020 by the effects linked to the Covid-19 pandemic. It also expects the cash generation process to continue, especially in Italy, also following the legislation linked to the increase in contractual advances. Finally, S&P deems Webuild's liquidity profile adequate, supported by its long-dated debt maturity profile, good cash-interest coverage, and significant cash holdings on the balance sheet.