Moody's Ratings assigns Baa3 rating to Mastec's new notes

Moody’s Ratings has assigned a Baa3 rating to MasTec, Inc.’s (NYSE: MTZ) new notes, reflecting the company’s improved credit profile and stable outlook. The rating upgrade aligns with MasTec’s ongoing deleveraging efforts and strong operating performance, particularly in its Clean Energy & Infrastructure segment. The stable outlook was revised from negative following the company’s successful integration of its 2022 acquisition of IEA and its reduce gross debt over the past year.

The Baa3 rating is supported by MasTec’s strong market position as a leading specialty contractor in North America, serving sectors such as communications, clean energy, and pipeline infrastructure. The company’s broad customer base, strong backlog, and conservative financial policies also contribute to its creditworthiness. However, the rating is tempered by the company’s exposure to cyclical markets and modest interest coverage.

Moody’s expects MasTec’s leverage to remain stable at approximately 2.4x by the end of 2025, with adjusted EBITDA projected to reach $1.1 billion and adjusted free cash flow around $250 million. The company’s liquidity position remains robust, with $400 million in cash and $1.8 billion in availability under its revolving credit facility.

The rating upgrade follows a similar move by Standard & Poor’s, which raised MasTec’s credit facility and senior notes ratings in response to the company’s improved balance sheet and strong operating results. Moody’s noted that continued strong performance, disciplined capital allocation, and sustained liquidity could lead to a further rating upgrade in the future.