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Construction giant gets tick of approval following USG Boral sale

Boral is recruiting for quarry managers on a permanent basis in Dubbo NSW, Dunmore NSW, Moy Pocket QLD, Mount Bundey NT, and Deer Pack VIC.


Boral has received a boost, after its BBB credit rating was affirmed by American credit rating agency S&P Global Ratings.

S&P Global Ratings moved Boral’s outlook from negative to stable following the sale of its 50 per cent stake in USG Boral.

The rating indicates an “adequate capacity to meet financial commitments, but more subject to adverse economic conditions”.

Boral chief executive officer and managing director Zlatko Todorcevski said the company appreciated the recognition of some positive business moves.

“Boral welcomes the decision by S&P to affirm its investment grade credit rating and revise the company’s rating outlook to stable following the sale of our 50 per cent interest in USG Boral and subsequent reduction in our net debt position,” Todorcevski said.

“As announced to the market on 1 April, in line with our financial framework the sale creates a surplus capital position of approximately $1 billion which is available for reinvestment, and/or return to shareholders.

“After considering Boral’s future expected operating and cash flow requirements, we also announced the intention to undertake an on-market share buy-back of up to 10 per cent of the shares on issue.”

This news comes on the back of further moves in the stock market, as industrial services and media giant Seven Group Holdings (SGH) has again increased its stake in Boral, upping its ownership past one fifth of the company to 22.984 per cent.

SGH’s latest increase in Boral was by three per cent after it came close to the 20 per cent mark last November.

Boral declined to comment on SGH’s uptake of Boral shares out of respect for its shareholders but indicated the stock movement would have no impact on the share buy-back scheme.

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