Fitch revises Stora Enso outlook to stable

Fitch Ratings said it revised Stora Enso Oyj's outlook to stable from positive while affirming the BBB- issuer default and senior unsecured ratings.

“The revision of the outlook is driven by expected material deterioration of cash flow generation in 2023 due to weakening demand for a majority of the group's products and due to customers' destocking, in particular for containerboard and consumer board, sawn wood, pulp and building solutions,” Fitch said in a press release.

Stora’s first half of 2023 was significantly weaker than the agency’s forecast, with stress in the second quarter. “We now expect material deterioration in EBITDA and EBIT generation in 2023 with margins at around 12.7% and 6.9%, respectively, versus 15.7% and 11% previously,” Fitch 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.