S&P revises Pinewood outlook to negative

S&P said it revised its outlook for Pinewood Group Ltd. to negative from stable and affirmed its BB- issuer rating and the BB issue-level and 2 recovery ratings (70%-90%; rounded estimate: 80%) on its £750 million senior secured notes.

“The negative outlook reflects our view that the shortening of the weighted-average debt maturity implies higher refinancing risks for Pinewood. The company's £750 million senior secured notes, which account for about two-thirds of total debt, mature in September 2025. This results in a weighted-average debt maturity of about 2.9 years as of November 2023–below the three-year minimum requirement we expect for peers in the real estate industry, S&P said in a press release.

The agency noted that Pinewood will need financing because its cash flows are not enough to cover the notes.

“We understand management is considering different refinancing options, but the discussions are still at an early stage. In our view, this enhances refinancing and liquidity risk for Pinewood,” S&P said.

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