S&P shifts Ahlstrom view to negative

S&P said it revised its outlook for Ahlstrom Holding 3 Oy (formerly Ahlstrom-Munksjo) to negative from stable and affirmed the B ratings on the company and its senior secured facilities due 2028; the recovery rating remains unchanged at 4.

“Lower-than-expected adjusted EBITDA and softened demand dropped Ahlstrom's financial results to our downside triggers in 2022 and first-quarter 2023. The group's transformation costs spiked to €140 million last year from roughly €110 million in 2021,” S&P said in a press release.

The agency said it expects Ahlstrom to recover with a “small comeback in 2024.”

However, S&P warned the negative outlook indicates the potential for a downgrade in the next 12 months unless Ahlstrom reduces leverage below 7x and generates substantial positive S&P Global Ratings-adjusted free operating cash flow.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.