S&P revises Itron view to negative

S&P said it revised the outlook on Itron Inc.'s to negative from stable.

The agency also said it affirmed all of the ratings on Itron, including its BB issuer credit rating.

The outlook revision reflects Itron's leverage of significantly higher than 4x in 2018, which resulted from sizable restructuring and integration costs, as well as supply chain challenges.

The company's adjusted leverage for the 12 months that ended in September was 8.3x, S&P noted.

The acquisition of Silver Spring Networks Inc. is expected to expand the company's product and service offerings and modestly improve end-market demand, the agency said.

The acquisition will continue to support modest revenue growth and good free cash generation in 2019, S&P said.

The agency said it expects cost-savings initiatives and lower one-time charges will improve profitability in 2019.

© 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.