S&P shifts Wittur view to negative

S&P said it revised its outlook for Wittur International Holding GmbH to negative from stable and affirmed its B- ratings on the company, its €90 million revolving credit facility and its €565 million term loan B.

“High raw material prices and inability to simultaneously adjust product prices have significantly subdued Wittur's profitability, weakening its credit metrics in 2021. Wittur's operating performance did not improve as anticipated during 2021, owing to the negative impact of the pandemic and rising raw material prices. The S&P Global Ratings-adjusted EBITDA margin fell to 6.2% in 2021, 220 basis points lower than the previous year, mainly due to a contractual delay in making price adjustments in response to significant raw material price increases (a time lag of four to six months),” the agency said in a press release.

Wittur's lower profitability than expected also means negative cash flow. “In contrast to our previous forecast, we now expect FOCF to remain negative in 2022 at €5 million-€15 million,” S&P said.

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