S&P lowers Novafives

S&P said it lowered Novafives to B- from B and on the super senior revolving credit facility to B+ from BB-.

“Novafives reported weaker-than-anticipated results in 2019 and its leverage and interest coverage metrics are likely to weaken further in 2020 as the effects of the Covid-19 pandemic cause its debt to EBITDA to surge to above 9.0x,” the agency said in a news release.

“A reduction in restructuring should enable the group to improve its EBITDA margins to about 5.0%-6.0% in 2020, from below 5.0% in 2019, which should mean free operating cash flow (FOCF) is still slightly positive in 2020. It was about €20 million last year.”

The outlook is stable.

© 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.