S&P cuts Yioula Glassworks

Standard & Poor's said it lowered the long-term corporate credit rating on Yioula Glassworks SA to B from B+ and its senior unsecured debt rating to B- from B.

The outlook is stable.

"The downgrade follows Yioula's weaker-than-expected earnings and cash flow and our expectation that the company's credit measures are not likely to improve to levels consistent with the previous ratings in the near term given the challenging operating environment," S&P analyst Izabela Listowska said in a statement.

"Continued weak operating cash flows will also put pressure on liquidity and limit the potential for debt reduction."

Ratings reflect limited liquidity, exposure to volatile input prices with continuous pressure to pass on cost inflation and the narrow scope of its operations, the agency said.

These weaknesses are partly mitigated by the group's dominant positions in relatively stable and mostly highly consolidated markets, its diversified and fairly protected customer base thanks to established relationships and a lack of alternative suppliers, as well as its decent profitability, the agency noted.

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