S&P slices Enjoy

S&P said it lowered its ratings for Enjoy SA to CCC- from CCC+, citing its forecast for the company to report a cash-flow deficit in 2023 and that it could face a liquidity crunch until the end of the year.

“As of March 31, 2023, Enjoy had approximately CLP 27 billion in cash, and we expect it to continue posting negative free operating cash flow during 2023. We estimate that this, along with about CLP 31.1 billion in debt maturities (mostly banking debt), interest payments of about CLP 10.6 billion until the end of this year, working capital needs and capital expenditure (capex) for license renewals, will result in a cash flow deficit of about CLP 16 billion that Enjoy will need to finance,” S&P said in a press release.

The agency said it does see operations continuing to recover in 2024.

The outlook is negative.

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