S&P moves BCP VII Jade view to positive

S&P said it revised the outlook on Cerdia’s parent BCP VII Jade Topco (Cayman) Ltd. to positive from stable.

“Higher average selling prices and stronger demand for acetate flakes will lead to higher-than-expected EBITDA in 2023-2024. We anticipate that higher sales prices and acetate volumes will more than offset the hit from high inflation and lost volumes from Russia in 2023. Net sales in the three months ending March 2023 were 33.2% higher than net sales reported in the same period in the previous year, driven by elevated sales prices and stronger acetate flake volumes,” the agency said in a press release.

S&P revised its EBITDA forecasts to reflect improved selling prices and end-market demand for some of the company's products, and projects Cerdia to report S&P Global Ratings-adjusted EBITDA of $150 million-$180 million in 2023 and $140 million-$170 million in 2024.

Additionally, S&P noted that Cerdia bought back a portion of its senior secured bonds with a nominal value of $40 million after repaying €65 million on its revolver.

The agency also affirmed the company’s B- long-term issuer credit and issue ratings on Cerdia and revised upward the estimated recovery prospects of the bond to 55% from 50%. The 3 recovering rating is unchanged.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.