S&P trims Aenova view to negative

S&P said it revised the outlook on Aenova Holding GmbH to negative from stable and affirmed its B- long-term corporate credit rating on the company.

At the same time, S&P affirmed its B- issue ratings on the company's €500 million first-lien senior secured debt and on the company's €75 million revolving and acquisition credit facilities. S&P affirmed its CCC issue rating on the company's €139 million second-lien facility.

The recovery rating on the second-lien loan is unchanged at 6. S&P revised the recovery ratings on the senior secured term loan B and on the credit facilities to 4 from 3. S&P’s recovery expectations are in the 30%-50% range (rounded estimate: 40%) for the senior secured debt, and in the 0%-10% range for the second-lien facility.

“The outlook revision to negative reflects that any setbacks in implementing the management's turnaround strategy would jeopardize a return to positive free operating cash flow (FOCF) and would put pressure on liquidity, increasing reliance on external funding either from the sponsor or from asset disposal,” S&P said in a news release.

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