Fitch assigns PCF B+, notes BB-

Fitch Ratings said it assigned PCF GmbH a first-time expected B+ long-term issuer default rating Fitch also gave PCF's upcoming notes an expected senior secured rating of BB-/ RR3.

“The IDR of PCF is constrained by its small scale, limited product and geographic diversification and high leverage as a result of the planned notes issue and proposed recapitalization. It is also underpinned by its exposure to less-cyclical renovation end-markets, a diversified customer base and long-term relationships with the majority of customers. Specialization on production of value-added products supports sustainably positive free cash flow (FCF) generation,” Fitch said in a press release.

The stable outlook reflects the forecast the company will continue generating strong cash flow margins (funds flow from operations (FFO) margin of about 10% and FCF margin of about 5%-6% from 2022) and grow organically, the agency said.

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