S&P turns Adler Pelzer view to negative

S&P said it changed its outlook for Adler Pelzer Holding GmbH to negative from stable and affirmed its B- ratings on the company and its €425 million of senior secured notes.

“The pronounced uncertainty on auto production forecasts and rising interest costs could hurt Adler Pelzer's earnings and cash flows. Continuing supply chain constraints exacerbated by the Russia-Ukraine war are causing volatility in auto production because original equipment manufacturers (OEMs) must occasionally stop production due to the shortage of certain components, such as semiconductors. Our current base-case scenario envisions an increase in auto production of 3%-4% in 2022 and 8%-10% in 2023. For the first three months of 2022, auto production decreased by about 3%,” the agency said in a press release.

Additionally, S&P said it revised Adler Pelzer's management and governance assessment to weak from fair, because of the group's second delay in filing its audited annual reports, poorer transparency on public disclosure than sector average and group’s complex structure.

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