Fitch flips Accell outlook to negative

Fitch Ratings said it changed its outlook for Accell Group (Sprint BidCo BV) to negative from positive but affirmed its B issuer and B+ senior secured ratings. The debt recovery rating remains RR3.

“Accell's FCF and liquidity headroom has been materially eroded by persisting supply chain challenges, leading to high trade working-capital (TWC) outflows in 2022. This led to a substantial drawdown of its €180 million committed revolving credit facility (RCF), in addition to raising a €75 million asset-based loan (ABL) to restore part of its liquidity buffer,” Fitch said in a press release.

However, the agency noted, “Accell is taking steps to increase control over procurement and improve operational processes, which along with a recovery of its production, are expected to help normalize inventories and receivables. We project a mild TWC outflow in 2023 and see limited visibility over the pace of the TWC reversal.”

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