S&P turns KronosNet view to negative

S&P said it revised its outlook for KronosNet Topco SL and its subsidiary KronosNet CX Bidco 2022 SL, to negative from stable and affirmed the B+ ratings on both entities and the group's senior unsecured €753.5 million term loan B; the recovery rating on the debt remains at 3, indicating about a 50% recovery in default.

The agency said it forecasts weaker-than-expected performance for KronosNet which will lead to S&P Global Ratings-adjusted leverage above 5x by year-end 2023, at 5.3x, and weaker cash flows.

“The negative outlook indicates the likelihood of a downgrade if KronosNet does not deleverage below 5x and improve its free operating cash flow (FOCF) in the next 12 months,” S&P said in a press release.

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