S&P trims Optimus

S&P said it downgraded Optimus and its senior secured debt to B- from B.

“The group’s revenue dipped by €84 million to €245 million in the first half of the year, and it reported a loss before tax of €12 million. These setbacks have stemmed from Covid-19 economic fallout, including an expected 20% decrease in sales decrease, muted profitability, and a peak in leverage,” S&P said in a press release.

The agency forecasts the group’s debt to EBITDA to be around 11x, compared with 7.8x at end-2019, and an FFO cash interest coverage ratio at about 1.8x, below its previous downgrade trigger of 2.5x.

“That said, Optimus should have sufficient liquidity throughout this challenging period. The group repaid €45 million on the €70 million that it drew under its RCF in first-quarter 2020. Furthermore, the group has €37 million of total cash at the end-June 2020 and no debt maturities in the next two years (the term loan B only comes due in July 2025). We, therefore, believe Optimus has enough cash to weather the pandemic and right-size the business,” S&P said.

The outlook is stable.

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