S&P moves Mattamy view to positive

S&P said it changed Mattamy Group Corp.’s outlook to positive from stable and affirmed the BB ratings on the company and its senior unsecured notes.

“Mattamy continues to reduce net debt even as EBITDA is set to improve by double-digit percentages in 2022. Our forecasts suggest EBITDA rises another 10% this year, to about C$950 million, following a 29% jump in fiscal 2021 (May). Combined with a more than C$500 million reduction in borrowings to enter this current year and ongoing pay-down, debt to EBITDA is set to remain firmly below 2x for the second straight year in fiscal 2022,” the agency said in a press release.

The outlook is based on the expectation that Mattamy's debt to EBITDA will stay below 2x and debt to capital will trend further below 40%, even as it invests for near-term growth, S&P said.

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