S&P lifts Marcolin to positive

S&P said it revised the outlook on Marcolin SpA to positive from stable.

The agency also said it affirmed the company’s B- issuer credit rating.

The agency also said it affirmed the B rating on Marcolin's €30 million revolving credit facility and B- rating on the €200 million senior secured notes due in November 2019.

The outlook revision reflects a view that Marcolin will continue to grow its revenues while slowly improving the operating margin, S&P said, and an expectation that it will generate positive discretionary cash flow from full-year 2016 onward.

The company also widened its covenant headroom following a covenant reset on its revolving credit facility, the agency said.

The company's luxury eyewear division is showing good momentum, especially in Europe, S&P said.

Margins are benefiting from the sound performance of the Tom Ford brand, the agency said, and the completed integration with VIVA International.

Some ongoing pressure in emerging markets and a slowdown in United States still pressure the ratings, S&P added.

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