S&P alters Accell outlook to negative

S&P said it changed its outlook on Accell Group (Sprint HoldCo BV) to negative from stable and affirmed the B issuer and issue ratings.

“Delayed delivery and missing components are hurting Accell's FOCF. The group assembles traditional and electric bikes in its four European manufacturing sites, by sourcing part of e-components from Eastern Europe, and various other components from Asia (such as China, Japan and Vietnam). The exponential rise in demand for electric bikes over the past two years created significant bottlenecks at key suppliers, which was exacerbated by pandemic-related restrictions in Asia and a shift in negotiating power toward suppliers, especially for batteries,” S&P said in a press release.

The agency warned it could downgrade Accell if supply chain troubles continue in 2023, resulting in persistent working capital volatility that could prevent it from delivering positive FOCF after leases.

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