S&P lowers Legrand view to stable

S&P said it revised the outlook on Legrand SA to stable from negative and affirmed the A- long-term and A-2 short-term issuer credit ratings on the company.

The agency also said it affirmed the issue ratings on its outstanding debt.

The company reported sound 2018 performance and is expected to post resilient results through 2020, S&P said.

The agency said it believes that management remains committed to maintaining a robust balance sheet.

Free operating cash flows will support external growth and further progressive de-leveraging, S&P said.

As a result, the agency said it anticipates that Legrand's funds from operations-to-debt will continue to gradually improve and be in the 37% to 40% range for 2019 and 2020.

The stable outlook reflects a view that Legrand will continue to generate robust, stable EBITDA margins and material free operating cash flow, which it will use to finance its acquisitions, S&P said.

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