S&P cuts Getronics view to stable

Standard & Poor's said it revised its outlook on Getronics NV to stable from positive and affirmed its B+ long-term corporate credit and B- senior unsecured debt ratings on the group. S&P also assigned its B+ rating and 3 recovery rating to Getronics' €300 million senior secured bank loan.

S&P said the outlook revision follows S&P's review of the group's business and financial profiles.

S&P said it expects Getronics to again generate weak free cash flow in 2005 after a negative figure in 2004. An upgrade to the BB- category is consequently unlikely in the coming months. Getronics' disappointing revenues in recent months, coupled with gross margins capped at less than 20%, attest to fierce competition in the company's main markets, the agency said.

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