OREANDA-NEWS. Fitch Ratings says in a new report that the recent trend by EMEA engineering and construction (E&C) companies for the disposal of non-recourse concession assets is not always rating positive, especially if cash proceeds are exclusively used to fund future investment in greenfield assets. Most EMEA E&C issuers continue to expand their activities through concession assets and seek diverse ways of funding this growth.

The report clarifies Fitch's view on the recent trend of disposals of non-recourse concessions and the potential impact on the issuer's ratings. In addition it also covers the different aspects that we focus on when analysing these type of assets.

Investment grade issuers such as Vinci (BBB+/Stable) and Ferrovial (BBB/Stable) hold mature concessions, which provide stable and recurrent dividend flows which is rating positive. On the other hand, low non-investment grade issuers such as Abengoa (B+/Negative), Astaldi (B+/Stable) and Aldesa (B/Stable) tend either to rotate assets to fund future growth or do not benefit from recurrent and stable upstream dividends.