S&P cuts Marcolin

S&P said it downgraded its ratings for Marcolin SpA and its senior secured notes to B- from B, citing the effect of the coronavirus on the company’s sales.

We now forecast a material contraction in sales in 2020 of about 25% from €487 million revenues reported at end-2019, and an S&P Global Ratings-adjusted EBITDA margin at around 9% from about 9%-9.5% in 2019, which includes €8.5 million extraordinary costs. As a result, we believe the group's adjusted debt to EBITDA will rise in 2020 to nearly 9.5x-10x, which is not commensurate with a B rating,” said S&P in a press release.

The outlook is negative.

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