S&P cuts Valeo Foods

S&P said it downgraded its ratings on Platform Bidco Ltd., Valeo Foods Group’s parent entity, and its €600 million and £417.5 million senior secured term loan B facilities due September 2028 to B- from B.

“The downgrade reflects the marked deviation in the deleveraging trajectory in the coming 12-18 months with our forecast of debt to EBITDA remaining above 8x by fiscal 2023.Our updated forecasts for the fiscal year 2023 (FY2023; ending March 31, 2023) comprise our adjusted debt (excluding cash, including factored trade receivables) to EBITDA of about 8.5x-9x and FOCF generation (after lease payments) of about €10 million-€20 million. These metrics are much weaker than our previous base case of 7.1x-7.3x and €40 million-€50 million, respectively,” the agency said in a press release.

The outlook is stable.

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