Moody’s Investor Service has changed its outlook on Australia’s Boral Ltd from stable to negative, while also affirming its Baa2 issue rating.
"The change in outlook to negative reflects Moody’s expectation for weak earnings given a significant pull back in housing starts in both the US and Australia. In addition, Moody’s expects certain non-residential construction projects to be delayed or cancelled as a result of broad weakness in economic demand," said the investor service in a statement.
Moody’s also recognised the impact of the coronavirus outbreak on the building materials industry. "For at least the next three months, Moody’s expects the coronavirus pandemic will lead to a period of severely reduced demand for Boral's products and supply chain disruptions. Moody’s assumes a gradual recovery from the third quarter," said the company.
