S&P gives Sixt BBB

S&P said it assigned a BBB rating to Sixt SE with a stable outlook.

“We think Sixt's focus on profitable revenue growth, premium positioning, and strategy of fleet acquisitions (mostly under buyback agreements), alongside its moderate debt levels, place it in a good position to withstand the impending slowdown in demand and higher interest rates in the near-to-medium term,” S&P said in a statement.

The outlook reflects an expectation the company will deliver robust top-line growth and sidestep a sharp decline in profitability even with a normalization of pricing conditions, the agency noted.

“In our view, this will be supported by the continued recovery of air traffic, Sixt's expansion in North America, the van and truck and subscription business, and the company's focus on premium customers. This should enable the company to maintain EBIT interest coverage of well above 3.5x, and FFO to debt of at least 30%,” S&P said.

© 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.