ICA to Avoid Further Downgrades in ‘Tough Year,’ Quintana Says
Empresas ICA SAB (ICA*), the Mexican construction company seeking to raise cash to cut debt, will avoid additional credit downgrades, Chief Executive Officer Alonso Quintana said.
Public-works spending by President Enrique Pena Nieto’s administration has been slower than expected, leading to a “tough year,” Quintana said at the Bloomberg Mexico Conference in New York. Moody’s Investors Service and Standard & Poor’s lowered Mexico’s largest construction company’s credit rating in May, citing falling revenue and rising debt.
Sales gains in the second quarter and the rest of this year will help the company boost revenue from last year even after a 27 percent first-quarter decline, Quintana said.
ICA is likely to generate revenue of 39 billion pesos ($3 billion) this year, according to analysts surveyed by Bloomberg, a 4.3 percent increase from last year. ICA had sales of 37.4 billion pesos in 2012, the company said in May after restating information based on accounting changes adopted this year.
ICA is also bolstering investment in Central America and South America while studying expansion opportunities in the U.S. through an acquisition or partnerships, Quintana said.