S&P cuts Mauser view to negative

Standard & Poor's said it revised its outlook on Mauser AG to negative from stable following its announced plan to recapitalize the company. The B long-term corporate credit rating was affirmed.

The revision reflects S&P's expectation that the company's financial profile will weaken due to a material increase in debt resulting from the planned recapitalization. This would weaken the group's credit measures, resulting in an expected increase in adjusted debt-to-EBITDA ratio to about 6.5x in the near term, which is weak for the ratings, the agency said.

The ratings continue to reflect the group's highly leveraged capital structure and its continuously aggressive financial policy, S&P said. The ratings are further constrained by Mauser's sensitivity to raw-material price fluctuations, particularly with regard to steel and high-density polyethylene resin, the agency said and the mature industry in which the group operates.

These factors are mitigated by Mauser's large market share in the industrial packaging industry, global distribution network and market presence, focus on higher growth segments of the industry and its good operating performance.

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