S&P downgrades Elis

S&P said it downgraded Elis SA to BB from BB+, citing the expected effect of the coronavirus pandemic on the company’s performance.

“We anticipate revenue decline in 2020 of about 10%, with further downside if the pandemic continues over a longer period,” S&P said in a press release.

Elis closed a number of its plants and Europe and reassigned a large number of workers to partial unemployment to cut costs, S&P said.

The outlook is negative. The agency said it sees a risk the company’s net leverage covenant will be breached or the revolver’s availability will be restricted if conditions remain unchanged.

© 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.