Construction group Murray & Roberts Holdings Limited's (MUR) long term domestic ZAR currency rating of A+ single A plus) and short term rating of A1 (single A one) have been A+ reaffirmed by international credit rating agency, Global Credit Rating Co (GCR).
 
GCR analyst, Sheri Few, said that Murray & Roberts' strong position in the domestic construction economy lent support to the rating.

In addition, the group continues to maintain a very strong balance sheet, having remained in a net cash position since F98 as part of its core strategy.

To this end, despite recent acquisition activity Murray & Roberts' remained in a strong net cash position of R637m in F06 (F05: R1.2bn).
 
Overall, prospects for the industry remain good, as the group's construction and related businesses in South Africa are well positioned to benefit from government's planned infrastructure spending over the next five years, having secured a leading position in a large number of these projects.

The group's growth prospects are further improved by its participation in projects outside South Africa, where margins are typically higher than the local market.
 
Cognisance was taken of the need for prudent management of cash flows (particularly in its foreign operations) and capacity, with capacity been of particular importance given the (global) shortage of construction skills.

The shortage of inputs was also viewed as a risk, although Murray & Roberts is partially in control of its own supply chain.

I-Net Bridge
 

Publisher: I-Net Bridge
Source: I-Net Bridge