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S&P lowers McLaren view to negative
S&P said it revised the outlook on McLaren Group Ltd. to negative from stable.
The agency also said it affirmed the company's B long-term issuer credit rating, along with the BB- rating and 1 recovery rating on the £90 million super senior revolving credit facility borrowed by McLaren Holdings Ltd. and McLaren Finance plc.
The recovery rating of 1 reflects an expectation of 90% to 100% expected default recovery.
S&P also said it affirmed the B rating and 3 recovery rating on the £370 million and $250 million senior secured notes due 2022 issued by McLaren Finance.
The recovery rating of 3 reflects a 50% to 70% expected default recovery.
The outlook revision is due to an expectation that McLaren faces continued losses and negative free operating cash flow for longer than previously expected, S&P said.
This is due to high ongoing capital expenditures, as well as weak results in the F1 racing business, the agency said.
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