S&P places Cullinan Holdco on watch

S&P said it placed its B+ ratings on Cullinan Holdco, the parent of Graanul Invest, and its debt on CreditWatch with negative implications.

“The CreditWatch negative placement reflects that leverage risk will be well above our expectations for 2023 due to rapidly decreasing cash flow. Higher costs associated with production and operations have resulted in Cullinan's EBITDA being well below our expectations during the first half of 2023. While we note the operations' seasonal structure, which affects sales and production, we see a major risk that debt to EBITDA will be substantially higher for 2023 and 2024, potentially up to 6x-7x compared with our previous forecast of 4x-4.5x,” S&P said in a press release.

S&P said it plans to meet with management to discuss the upcoming situation and resolve the negative watch in the next three months.

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