Moody’s changes SIG outlook to negative

Moody’s Ratings said it changed its outlook for SIG plc to negative from stable and affirmed its B1 corporate family rating, B1-PD probability of default rating and B2 rating on its €300 million backed senior secured notes due 2026.

SIG’s Moody's adjusted debt / EBITDA rose to 5.4x in 2023 from 4x in 2022 and Moody's adjusted EBITA/interest declined to 1.1x from 2.6x.

Moody's said it forecasts lower construction and refurbishment activity in 2024 in SIG's main markets, including France, the U.K., Germany and Benelux in the first half of the year. “This will limit potential recovery of the company's earnings in 2024 which will however be supported by cost-saving initiatives (approximately £10 million as estimated by the management). More positively, Moody's expects construction activity to gradually pick up from the second half of 2024 and in particular in 2025,” the agency said in a press release.

“The negative outlook reflects SIG's weak credit ratios for the current rating and risks of slower than expected recovery in the second half of 2024 and 2025. It also reflects Moody's expectations that SIG's profit margin will start to recover in 2024 and that the company's liquidity will remain good,” the agency added.

© 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.