S&P cuts Kaefer Isoliertechnik

S&P said it lowered its ratings on Kaefer Isoliertechnik and its notes to B+ from BB-. The 4 recovery rating is unchanged.

“Specifically, we expect Kaefer's revenue, operating profits, and credit metrics in 2020 will be hindered by the effects of authorities' Covid-19-related social-distancing measures, including project execution delays, lower utilization of frame contracts, and limits to flexible sourcing of staff,” S&P said in a press release.

“Kaefer will generate about 40% less S&P Global Ratings-adjusted EBITDA and that its margins will drop to about 4.5% from 6%. This will limit free operating cash flow over the next 12-18 months, translating into weaker credit metrics than expected,” the agency said.

The outlook is negative.

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