S&P turns SI Group view to stable

S&P said it revised its outlook for SI Group (SK Mohawk Holdings Sarl) to stable from positive and affirmed all its ratings, including the B- issuer rating.

“The outlook revision reflects the challenging macroeconomic environment and the company's leverage metrics remaining high with limited prospects for improvement over the next 12 months. Although the company to date has been able to grow top-line revenues year over year, most of that is the result of price increases and margins have since taken a hit given the elevated material, manufacturing, and distribution costs–particularly in energy and freight,” the agency said in a press release.

S&P said it now forecasts SI Group’s S&P Global Ratings-adjusted weighted-average debt to EBITDA will be 6.5x-7.5x over the next couple of years.

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