S&P cuts Armor-Iimak

S&P said it downgraded its ratings on EN6 SAS (Armor-Iimak) and its €450 million senior secured term loan to B from B+.

“The downgrade reflects weaker-than-expected sales and EBITDA in 2022 and bleak recovery prospects in 2023. Low demand for labels (about 70% of Armor-Iimak's sales) resulted in weaker-than-expected S&P Global Ratings-adjusted EBITDA in 2022. We forecast revenue and EBITDA will remain at similar levels in 2023 and expect demand to recover only in the second half of the year or 2024. We anticipate debt to EBITDA at 7x-7.5x at year-end 2023 (compared with 7.2x in 2022)–well above our downgrade trigger (6x),” S&P said in a press release.

The outlook is negative.

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