S&P upgrades Praesidiad

S&P said it upgraded its ratings for Praesidiad Group Ltd. and the issue rating on its debt to CCC+ from CCC.

“Amid the difficult operating environment, under our revised base case we expect Praesidiad’s revenue to decline by about 8%-9% in 2020 versus 2019, although S&P Global Ratings-adjusted EBITDA margins should improve on the back of cost-saving initiatives. After a tough first nine months of 2020--when the company’s operations were affected by the Covid-19 outbreak in March, with revenue 18% below the budgeted figure for the period ending September 2020 and EBITDA flat--we are revising our base-case assumptions,” S&P said in a press release.

“We believe the resulting volume loss (mainly across Europe, Middle East, and North Africa [EMENA], and the Americas) as well as project delays in South Africa, and supply chain disruptions, will be partially offset in the remaining months of 2020 by an improved order book, particularly in the Hesco business, although uncertainty remains around the upcoming months,” the agency said.

The outlook is negative.

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