S&P shifts Americanas view to negative

S&P said it revised its outlook for Americanas SA to negative from stable and affirmed its BB issuer rating. The agency also affirmed the BB issue-level ratings on JSM Global Sarl and B2W Digital Lux Sarl's senior unsecured notes with a 4 (45%) recovery rating.

“Even though operating results have been favorable in recent quarters, sizable M&As, share repurchases, and additional supplier financing have increased leverage to levels much higher than we were expecting. Adjusted debt to EBITDA rose to 6.5x in 2021–or 4.1x considering pro forma numbers due to the company's recent restructuring––from a projected 1.5x-2x,” S&P said in a press release.

The agency said it now projects Americana’s adjusted net debt to EBITDA of 4x-4.5x in 2022 falling to about 3x by 2024.

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