Fitch views Travis Perkins negatively

Fitch Ratings said it revised Travis Perkins plc's outlook to negative from stable and affirmed its BBB- long-term issuer default and senior unsecured instrument ratings.

“The negative outlook reflects Fitch's expectations of only limited recovery in 2024 following the mid-single-digit contraction in volumes at the company's core Merchanting unit in 9M23, which is going to impact 2023-2024 earnings more negatively than previously anticipated. This results in temporary higher leverage than appropriate for the BBB- rating. Fitch expects a recovery in profits from this low point in the cycle, supported by a resumption of favorable underlying demand drivers by 2025,” the agency said in a statement.

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