Inflation Testing Credit Profile of Engineering & Construction Companies
DBRS Morningstar released a commentary titled, “Inflation Testing Credit Profile of Engineering & Construction Companies,” which examines the impact of decade-high inflationary trends in construction costs on the credit profile of Engineering & Construction (E&C) companies. In the near term, we expect E&C companies in our prospective coverage universe that have higher exposure to fixed price contracts could face material losses because of cost over-runs, potentially weakening their financial metrics. Conversely, the financial profile of E&C companies with a higher mix of variable price (cost plus) versus fixed price contracts should be relatively resilient to inflationary pressures.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.