S&P upgrades Photonis

S&P said it raised the long-term issuer credit rating on Photonis Technologies SAS to B- from CCC.

The agency also said it simultaneously withdrew all of the ratings at the issuer's request.

Photonis has finalized the refinancing of its €252 million term loan B, which was due Sept. 18.

The refinancing removes short-term default risk due to the lengthened maturity profile of the company's new debt and thanks to the lower interest burden, S&P said.

Before the ratings were withdrawn, the agency said it raised the rating on Photonis, principally because of the company's enhanced free cash flow generation profile.

This results from €17 million lower cash interest payments under its new capital structure and from improved operating performance fueled by a pick-up in sales for night vision tubes, S&P explained.

The agency also said it expects that Photonis will further reap the benefits of its cost-restructuring program.

The company's leverage does remain high at about 18x and it has limited control over the delays between contract awards and the start of production, S&P noted.

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