S&P cuts Groupe Ecore

S&P said it lowered Groupe Ecore Holding and its issue ratings to B- from B attributing the downgrade to soft demand for steel and very low scrap prices hurting the company’s performance.

“The downgrade reflects Ecore's weaker-than-expected results, linked to the European steel industry contraction and a wider regional slowdown in 2019, which are expected to continue in 2020. We now expect the company to report adjusted EBITDA of up to €55 million in 2020, which would translate to elevated credit metrics, including an adjusted debt to EBITDA of more than 6.5x,” said S&P in a press release.

The outlook is stable.

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