S&P cuts Mauser group's view to negative

Standard & Poor's said it affirmed its B+ long-term corporate credit ratings on Mauser Beteiligungs GmbH (Mauser) and Mauser Werke GmbH & Co. KG (Mauser Werke), the immediate parent company of Mauser's main operating subsidiaries.

Ratings affirmed include Mauser Beteiligungs' corporate credit rating at B+, senior unsecured debt at B- and Mauser Werke GmbH & Co.'s corporate credit rating at B+.

The outlook was changed to negative from stable, reflecting S&P's concerns that the group's strategy of debt-financed acquisitions may weaken its already highly leveraged financial profile, making it a challenge for the group to post adequate credit protection measures in the current, difficult trading environment, S&P said.

S&P said the ratings continue to reflect the group's sensitivity to raw-material price fluctuations, particularly with regard to steel and HDPE (a type of resin), as well as the fairly mature and fragmented industry in which the group operates.

These factors are mitigated by the group's large market share in the industrial packaging industry, global distribution network and market presence and focus on growth sectors such as plastic drums/containers and intermediate bulk containers, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.