S&P turns Ahlsell view to stable

S&P said it revised the outlook for Quimper (Ahlsell) to stable from negative and affirmed the B ratings on the company.

“The pandemic continues to have limited impact on Ahlsell. Lockdowns measures have been less severe in the Nordics than in continental Europe and have had a limited immediate impact on Ahlsell’s operations so far. Building materials companies are considered essential to the Nordic economies,” S&P said in a press release.

Ahlsell plans to obtain a SEK 2.5 billion add-on to its first-lien term loan. Together with SEK 1.5 billion of cash, the add-on will be used to repay the second-lien term loan. This refinancing would translate into gross debt reduction of about SEK 1.5 billion, the agency said.

“The stable outlook reflects our view that the company will continue to benefit from resilient building materials end-markets, while generating free operating cash flow (FOCF) in excess of SEK 1.8 billion and with adjusted leverage of about 5.4x-5.6x,” S&P said.

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