Fitch changes ams-Osram view to stable

Fitch Ratings said it revised the outlook on ams-Osram AG to stable from positive and affirmed its BB- long-term issuer default rating and senior unsecured rating at BB-. The senior unsecured recovery rating is RR4.

“The revision of the outlook reflects Fitch's view that the company is no longer likely to meet its upgrade leverage and free cash flow (FCF) sensitivities in the short term. Pressure on earnings margins from supply chain disruptions and volatile demand in key end-markets mean that the company's de-leveraging capacity has stalled, and gross leverage will likely stay above the present upgrade sensitivity of 3x until at least 2025. Temporarily high capex will also lead to negative FCF in 2023 and possibly 2024, which is materially below the upgrade expectations,” Fitch said in a press release.

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