S&P upgrades Ahlsell

S&P said it raised its long-term issuer credit rating on Ahlsell's parent company Quimper AB to B+ from B and the issue credit rating on Quimper's outstanding SEK 20.12 billion-equivalent term loan B to B+ from B. The recovery rating remains at 3.

“When compared to B-rated peers, Ahlsell, in our view, has stronger earnings and cash flows, leading to lower leverage levels. Ahlsell has a track record of generating higher cash flows than peers, supported by an above-average profitability, the asset-light nature of the business, and its focus on working capital management. The company has successfully managed to grow in size. We now expect that it will generate more than SEK 50 billion in sales this year, compared with approximately SEK 32 billion in 2019 when we assigned the B rating,” S&P said in a press release.

The agency said it sees Ahsell increasing its EBITDA to SEK 5.8 billion–SEK5.9 billion in 2023, from SEK 5.6 billion in 2022, cutting its leverage to 4x-4.3x from 4.4x in 2022.

The outlook is stable.

© 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.