GRUPO LANTANIA SA


Type of ratings: Corporate

Rating value: BB

Outlook: Stable

License: EthiFinance Ratings

Solicited

Grupo Lantania S.L. and its subsidiaries (hereinafter Lantania or the group) is a Spanish infrastructure, water and energy group. The group is engaged in the development and construction of road and railway infrastructures, the execution of projects related to the integrated management of the water cycle and the generation and distribution of energy, as well as the construction of homes and unique buildings. At the end of the 2021, the company reported revenues of € 248.8M with EBITDA of € 14.9M, registering an adjusted DFN/EBITDA ratio of 1.4x. Ethifinance Ratings affirms Grupo Lantania's rating at "BB", changing the trend from Positive to Stable. The group has passed fiscal year 2021 with an exponential growth of its turnover thanks to the signing of two major projects in Saudi Arabia, which gives it a size and prestige that will favor its future growth. However, the sector is being significantly impacted by the growth in the cost of materials, energy and labor. In the case of Lantania, it produced a drop in the adjusted EBITDA margin of 1.7 p.p. at the end of 2021, which will continue to decrease in 2022. The construction and infrastructure sector is suffering markedly from this inflationary environment, where some materials have risen by up to 50% in the last year. At Ethifinance Ratings we trust the experience of the group's management, its commitment to diversify both by business and by geography, its conservative financial policy in terms of indebtedness and the fact that the business will be favored by the record spending allocated to infrastructure in the General Budgets of the State for 2023 and the Next Generation European Funds.

Ratings

Rating action: Under Observation

Review due to methodologies update.

Action date: 2022-11-10

Date last rating: 2022-11-04

Date first rating: 2020-10-29

Documents

Executive summary:

Methodologies

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