TSC Ratings' Updates: Eldorado

The following ratings changes were generated on Tuesday, Jan. 6.

We've upgraded Aecom Technology(ACM Quote), which provides professional technical and management support services to government and commercial clients worldwide, from sell to hold. Strengths its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, we also find weaknesses including weak operating cash flow and poor profit margins.

Revenue rose by 46.2% since the same quarter a year ago, outpacing the industry average of 41.3% growth and helping to boost earnings per share. Aecom's debt-to-equity ratio of 0.3 is very low, though it is currently higher than that of the industry average, and the company maintains an adequate quick ratio of 1.3, which illustrates the ability to avoid short-term cash problems. ...