S&P rates Expleo, loans B-

S&P said it assigned B- ratings to Expleo Group and its subsidiaries, Assystem Technologies and Expleo Services SASU and also assigned B- issue ratings to its term loan B and revolving credit facility. The recovery rating is 3, and the outlook is stable.

“As a result of high exceptional and refinancing costs, engineering and technology service provider Expleo Group is expected to report a third year of negative free operating cash flow (FOCF) in 2023; 2024 should see FOCF turn positive, at €35.5 million,” the agency said in a press release.

Expleo plans to address its near-term refinancing and liquidity risks by obtaining a new term loan B and using the proceeds to repay debt. It will also lengthen its debt maturity profile by extending the maturity of its term loan B and revolver.

The stable outlook reflects the view Expleo will complete its refinancing and that its credit metrics will remain in line with the ratings for at least the next 12 months, S&P said.

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