S&P cuts Siaci

S&P said it downgraded its ratings for Siaci Saint Honore and its senior secured debt to CCC+ from B-. The 4 (45%) recovery rating on the debt is unchanged.

Siaci is expected to report negative cash flow this year and in 2021, citing transformation costs and some pandemic-related operational disruption, partly offsetting improved EBITDA generation.

“We assess Siaci’s liquidity as weak due to our expectation that its liquidity sources will not cover its liquidity needs in the coming 12 months. We expect the initiatives that Siaci has implemented to date to improve its EBITDA margin in the next two years. However, Siaci’s investment needs will continue to weigh on its ability to generate positive free operating cash flow (FOCF),” the agency said in a press release.

The outlook is negative.

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