Fitch Ratings downgraded Australian steelmaker InfraBuild’s Long-Term Issuer Default Rating (IDR) to ‘CC’ from ‘CCC-‘, citing a high risk of default on its US$550 million notes in the next three months. The downgrade follows InfraBuild’s repeated delays in publishing its FY24 audited financials.

The company’s earnings continue to decline, with first-half FY25 EBITDA down 43% year-on-year, while rising steel imports from North Asia put further pressure on margins. Unlike the US and the EU, Australia has not introduced new steel import restrictions besides existing anti-dumping duties.

Potential price hikes for steel billets from the struggling Whyalla Steelworks could add to InfraBuild’s challenges, though the EBITDA impact is expected to be under A$20 million. The company’s A$288 million in cash is inadequate to cover potential debt acceleration, forcing it to explore asset sales and refinancing amid tough market conditions.