Fitch downgrades PCF

Fitch Ratings said it downgraded PCF GmbH's long-term issuer default rating to B from B+ and its senior secured rating to B+ from BB-. The recovery rating remains at RR3.

“The downgrade reflects a likely sharp deterioration in PCF's financial profile for 2024-2025 versus our previous expectations. In addition, dividend payments of €28 million will result in negative free cash flow (FCF) in 2023. We forecast weaker demand especially for its engineering wood segment before it starts to recover slightly in 2H24, albeit in low single digits, coupled with high raw material costs hitting PCF's EBITDA generation in 2023 and 2024,” Fitch said in a press release.

The outlook is stable.

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