S&P cuts Ontex Group

S&P said it lowered to BB- its rating on Ontex Group NV due to weaker margins and upcoming investment needs.

The outlook is stable.

The company reported a weaker-than-anticipated operating margin in first-quarter 2019, due primarily to high input costs and foreign currency headwinds.

The downgrade was motivated by the view that Ontex's debt to EBITDA will remain significantly above 4.0x in the next 24 months, which is not commensurate with a BB rating, S&P said in a news release.

© 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.