S&P cuts Standard Profil Automotive

S&P said it lowered its ratings on Standard Profil Automotive GmbH and its senior secured notes due 2026 to CCC+ from B-.

“Standard Profil's current earnings level and high capital intensity hamper immediate FOCF prospects.We estimate that, after a sizable FOCF deficit of about €60 million in 2021, Standard Profil will burn €15 million-€25 million of cash this year. This is because its EBITDA recovery remains constrained by cost inflation, and the company continues to face elevated fixed capital and interest charges,” the agency said in a press release.

S&P said it forecasts the S&P Global Ratings-adjusted EBITDA margin will only improve to about 15% in 2022, below the pre-pandemic average of about 18%.

The outlook is negative.

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