S&P lowers Seagate

S&P said it lowered its ratings on Seagate Technology Holdings plc and its senior unsecured debt to BB from BB+.

“The downgrade reflects a deeper and longer cyclical trough than we previously expected. We now expect S&P Global Ratings adjusted leverage to peak at around 10x in fiscal 2023, falling only to 4.5x in 2024 and 2.5x in 2025. This compares with our previous forecast of 4.8x in 2023 and 2.6x in 2024. Leverage will be high for the BB rating, but the interest coverage of 4x and free operating cash flow (FOCF) to debt around 10% we expect for 2024 support it,” the agency said in a statement.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.