S&P lowers KronosNet

S&P said it downgraded its ratings on KronosNet Topco SL and its senior unsecured €870 million term loan B to B from B+. The recovery rating on the debt is unchanged at 3, indicating about a 50% recovery if the company defaults.

“A difficult macroeconomic environment and difficulties integrating Comdata are driving the weaker-than-expected performance in 2023. Despite close to 10% organic growth at constant foreign exchange rates, the depreciation of Latin American currencies reduced reported growth to reduce only 2%. In addition, KronosNet faces lower demand in Europe in the second half of 2023, mainly from its telecommunications and energy clients,” the agency said in a press release.

S&P said it does expect an improvement in 2024 but it no longer forecasts S&P Global Ratings-adjusted debt to EBITDA to decline under 5x by year-end 2024.

The outlook is stable.

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