Fitch lowers Officine Maccaferri to negative

Fitch Ratings said it revised the outlook on Officine Maccaferri SpA's long-term issuer default rating to negative from stable and affirmed the issuer default rating and senior unsecured rating at B- with a recovery rating of RR4.

The negative outlook reflects the uncertain outcome of the confirmed restructuring of the parent company, SECI SpA, Fitch said, and the on-going process of finding a new investor for Officine Maccaferri.

The negative view also considers the company´s weak cash flow generation, which was negatively affected in 2018 by non-recurring items, an extraordinary dividend payment and a substantial working capital outflow, the agency said.

Although improving, Fitch said it expects the free cash flow margin to remain negative until 2020.

Officine Maccaferri’s financial profile is constrained by high leverage, the agency said.

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