S&P lowers Iberconsa

S&P said it downgraded its ratings for Bering III Sarl (Iberconsa) and its bank loans to B- from B. The 3 recovery rating on the loans is unchanged.

Steep operating cost increases, especially in freight and labor, negative exchange rate fluctuations and technical issues with its fleet hammered Iberconsa’s profitability and free operating cash flow, the agency noted.

“For 2022, we now forecast adjusted debt leverage of about 9.5x with negative FOCF of €10 million-€15 million, compared with our previous assumptions of 7x and positive FOCF. S&P Global Ratings-adjusted EBITDA and FOCF exclude the expected impact from blue chip swaps,” S&P said in a press release.

The outlook is stable.

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