S&P lowers Colfax to negative

Standard & Poor’s said it revised the outlook on Colfax Corp. to negative from stable and affirmed its BB+ corporate credit rating.

The negative outlook reflects the potential that adverse market developments or more aggressive financial policies could cause Colfax’s credit measures to deteriorate below levels that are appropriate for a significant financial risk profile, S&P said.

Colfax’s free cash flow-to-debt ratio will likely remain stretched while its debt-to-EBITDA metric increases to about 3.5x over the next 12 months, the agency said.

The negative outlook also considers a risk that Colfax’s credit measures could weaken below expectations for a significant financial risk profile because of a weaker-than-expected operating performance or more aggressive financial policies.

© 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.