S&P downgrades Diamond (BC)

S&P said it downgraded Diamond (BC) BV, its secured and unsecured debt to CCC+ from B-. The secured debt recovery rating is unchanged at 3 and the unsecured recovery remains 4.

“The downgrade reflects the challenging macroeconomic conditions we expect Diamond BC BV (also referred to here as Diversey) will face in 2020, with credit measures remaining unsustainable. The threat of the coronavirus on demand for the company's products has emerged at a time when we already viewed credit measures as weak for the B- rating,” said S&P in a press release.

“The company continues to incur substantial operating and capital expenditure related to transition projects and investments in dosing and dispensing equipment. S&P Global Ratings now forecasts 2020 GDP contraction by 5.2% in the U.S. and 7.3% in the eurozone,” S&P said.

The outlook is negative.

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