S&P downgrades Lecta

S&P said it downgraded Lecta SA and the company’s senior secured notes to CCC from B-, saying it could face liquidity problems in the next 12 months if the company closes its mill in Condat, France.

S&P is also forecasting negative free operating cash flow to debt and adjusted leverage of 6.5x to 7.0x over the next 12 months.

“Our negative outlook reflects that there is a heightened risk that Lecta could consider entering into debt restructuring negotiations with lenders over the next 12 months,” S&P said in a press release.

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