S&P changes Inetum view to negative

S&P said it changed its outlook for Inetum (Granite France SAS) to negative from stable and affirmed the B ratings on the company and its €1.098 billion term loan.

“Significant restructuring and exceptional costs throughout 2023 will lead to lower credit metrics than we anticipated. The plan's implementation led to exceptional and restructuring cost overruns this year. We now estimate that adjusted leverage will reach 11.6x at year-end 2023, with negative reported FOCF after leases. We previously anticipated leverage of 6.5x-6.7x and reported FOCF after leases of about €35 million-€45 million,” S&P said in a press release.

However, the agency said it expects Inetum to improve its free operating cash flow, which will support the B ratings.

“We anticipate that Inetum's action plan will lead to revenue growth, lower exceptional costs, and operating margin gains from 2024, supporting deleveraging. We anticipate that adjusted leverage will decrease toward 7.4x in 2024 and 6.5x in 2025, and that reported FOCF after leases will turn positive from 2024,” the agency noted.

© 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.