Downer upgraded by Fitch

Last week Fitch upgraded Downer’s senior unsecured rating by one notch.

The upgrade was based on Downer’s improved financial risk profile, earnings diversification, and risk return discipline around the vetting of project bids. Fitch also cited Downer’s improved contract formation (risk-sharing arrangement) across its portfolio of projects, evidenced by its minimal exposure to lump-sum construction risk (other than that of the nearly completed Waratah Train Project’s rolling stock manufacturing contract).

According to Fitch, the rating action applied to all senior unsecured debt issued or guaranteed by Downer, including debt issued by Downer Group Finance Pty Ltd.

This is viewed as an important development and enhances our already positive view of the Downer credit.

FIIG has the following Downer senior bonds available:

Please note that due to ASIC regulations we are unable to disclose credit ratings to retail customers (and hence it is not mentioned in this article). However, wholesale clients wishing to receive the latest rating information can contact their FIIG representative to obtain this information.