S&P stabilizes Standard Profil outlook

S&P said it revised its outlook for Standard Profil Automotive GmbH to stable from negative and affirmed its CCC+ ratings on the company and its senior secured notes.

“Standard Profil is restoring some liquidity headroom via improved cash conversion. We anticipate the company will generate FOCF of about €15 million this year. This will be supported by the €15 million one-off cost compensation received from auto original equipment manufacturers (OEM) in the first quarter, improvements in its underlying profitability, capex declining to about €42 million (8.3% of sales) from €50 million last year (12.5%), and lower working capital outflows net of factoring effects of under €5 million from €19 million in 2022.

“We project the company will maintain at least breakeven FOCF next year thanks to adjusted EBITDA margins staying close to 17% and capex to sales remaining below 10%, despite cash interest expenses increasing to about €30 million from €25 million in 2022,” S&P said in a press release.

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