S&P changes SIG outlook to stable

S&P said it changed its outlook on SIG plc to stable from positive and affirmed the B+ issuer rating.

“The rating action reflects our revised forecast of SIG's adjusted leverage. We now expect adjusted debt to EBITDA will increase to about 4.4x-4.6x in 2023 from 4.1x in 2022, before moderating to 4.1x-4.2x in 2024. We base these ratios on our adjusted EBITDA forecast of £141 million-£145 million in 2023 and £152 million-£155 million in 2024, versus £157 million attained in 2022.

“Our lower EBITDA estimate for 2023 reflects ongoing soft demand in SIG's key end markets of repair, maintenance and improvement (RMI; about 50% of sales) and the new-build industry (also about 50%) amid a challenging macroeconomic environment, as well as inflationary pressure on operating costs,” S&P said in a press release.

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