Fitch places InfraBuild on watch

Fitch Ratings said it placed InfraBuild Australia Pty Ltd.'s long-term issuer default rating of BB- on rating watch negative. The agency also put the BB rating on its $325 million of senior secured notes due October 2024 on RWN.

“The RWN reflects increasing uncertainty from the funding issues faced by GFG Alliance. GFG Alliance's financing has been affected by the collapse of Greensill Capital, which filed for administration. Problems at GFG Alliance could have a contagion effect on its various companies, including the Whyalla steelworks and InfraBuild, and it may increase pressure on InfraBuild's liquidity and disrupt the timely supply of billets and structural steel,” Fitch said in a press release.

However, InfraBuild's loan documents and collateral provide adequate protection for creditors within the restricted group, the agency noted.

Another consideration is that InfraBuild’s liquidity is unaffected by GFG’s reported issues at this time, Fitch said.

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