Fitch trims Accell

Fitch Ratings said it lowered its ratings for Sprint Bidco BV (Accell Group) and its senior secured term loan due 2029 to B- from B. The agency also lowered the loan’s recovery rating to RR4 (50%) from RR3 (51%-70%).

“The downgrade follows limited progress on addressing supply chain challenges, which has eroded liquidity headroom and led to deeply negative free cash flow (FCF) in 2023, as well as weaker deleveraging prospects versus our prior expectations. Accell continues to undertake corrective actions; however, these are with meaningful execution risks that cast substantial uncertainty over the near-term restoration of its credit profile,” Fitch said in a press release.

The agency noted Accell’s €180 million revolver is fully drawn in addition to using a €75 million asset-based loan and a €70 million shareholder loan.

The outlook is stable.

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