S&P cuts Kapla Holding

S&P said it downgraded Kapla Holding (Kiloutou) and its debt to B from B+. The 3 recovery rating is unchanged, reflecting the expectation of meaningful recovery prospects (50%-70%; (rounded estimate: 55%) in the event of a payment default.

“We expect demand for Kiloutou's equipment, especially in France where the company generates most of its sales, will drop steeply, hurting revenues, profitability, and cash flows and resulting in higher leverage in 2020,” said S&P in a press release.

The outlook is negative.

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