— We believe that economic prospects and policy predictability in Greece are improving due to the recent actions to ease capital controls. We expect this will lead to further strong traffic growth in Ellaktor’s mature toll road concessions, along with rising construction revenues and margins.
— The group’s satisfactory operating performance and financial results for 2017 put the company on a path to deleveraging.
— We are therefore raising our long-term issuer credit rating on Ellaktor to ‘B’ from ‘B-‘ and affirming the ‘B’ short-term rating.
— The positive outlook reflects our expectation that Ellaktor’s debt-to-EBITDA ratio will remain sustainably below 5x if the newly appointed management focuses on strengthening Ellaktor’s operations while continuing to reduce leverage.
Source: Bloomberg
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