VINCI: Moody’s upgrades long-term credit rating by one notch to A3 – Capital.fr

(AOF) – The rating agency Moody’s raised Vinci’s long-term credit rating one level to Baa1 to A3. This upward revision is also applied to the short-term rating, to review P-1 against P-2 above. The outlook on these ratings remains stable. ASF motorway subsidiary of Vinci also benefits from this increase with credit notes identical to its parent. This increase aligns the long-term rating from Moody’s with that of the Standard & amp agency; Poor’s (A- since March 2014) and confirms the quality of credit Vinci

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The strengths of the value

– the world leader in diversified construction in motorway and airport concessions, with a strong international presence (42% of revenues);
– Long-term strategy based on the complementarities between concessions (15% of revenues with Vinci Autoroutes and VINCI Airports) and contracting (84% of sales with Vinci Energies, Eurovia and VINCI Construction);
– Visibility of the activity, with a backlog equal to over 70% of sales;
– Growth of airport concessions, trade high margin, Vinci Airports are now 5 worldwide with over 100 million passengers;
– Continuation on more favorable financial terms than planned motorway concession contracts in France:
– Strong debt reduction and high efficiency

points. low value

– motorway traffic sensitivity to rising gas prices and the purchasing power in Europe;
– Uncertainty on the community funding local and delay in the take-off of public-private partnerships (PPPs) due to budgetary constraints of European states, such as suspension of the line TGV Bordeaux-Hendaye or postponement of the new airport of Nantes
– Strong disparity margins between concessions, which provide more than 2/3 of the current profit, and contracting; – Continuation of the building until 2016 billings decline in France.
– Persistent weakness in sales and margins in the construction

How to track the value

– Sensitivity of revenue growth concession to vehicle traffic (including the heavyweight more sensitive to economic cycles);
– Sensitivity of concession activities to rise rates;
– Uncertainty about the future role of the French Agency for local government financing and the arrival of “projects bonds” (bonds to finance infrastructure projects in particular);
– Medium-term strategy based on international, with 3 focus: growth of the airport through external growth, growth through acquisitions Vinci Energy and changing technological mix of Eurovia and VINCI Construction;
– in airport concessions, waiting for new contracts and integration of Japanese airports, Chilean and Santo Domingo;
– Achievement of objectives 2016 a “margin improvements before the search volume”;
– competition to apply value, the first shareholders are employees (9.5% of capital), to Qatari Diar (5.2%)

Construction -. BTP

the redesign of interest loan (PTZ) meets building professionals and public works. Since 1 January 2016 and for only two years, this loan is simplified and expanded to new beneficiaries. It is true that the share of first-time buyers has fallen sharply in recent years (especially those under 35 years). The housing loan is also increased and the amount of PTZ can now represent up to 40% of the amount of the purchase of a new home (18% against 26% previously), regardless of the region where it is located. In parallel, the income limits will be increased to reach more beneficiaries. They will be aligned with those of the intermediate housing.