S&P turns Antolin view to negative

S&P said it revised Grupo Antolin’s outlook to negative from stable and affirmed its B ratings.

The semiconductor shortage and raw material inflation are hitting the company hard with third-quarter 2021 revenue falling by about 25% compared with the same period in 2020 and reported its EBITDA margin falling to 3.2% from 8.6%, the agency noted.

“We now anticipate the company will generate only modest revenue growth of 0%-2% in 2021, with adjusted EBITDA broadly in line with last year's €191 million. This is much weaker compared with our May 2021 forecast revenue growth of 9%-11% and EBITDA of €240 million-€280 million, and will likely result in adjusted leverage of about 9x compared with 5.9x in our previous base-case scenario, and slightly up from 8.3x in 2020,” S&P said in a press release.

The agency also warned that with the weaker performance, covenant pressure is back, but it expects Grupo Antolin to amend its covenants if needed.

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