S&P shifts AAG FH view to negative

S&P said it affirmed AAG FH LP’s outlook to stable from negative and affirmed all its ratings for the company, including the B- senior unsecured rating.

“The stabilization of the rating follows AAG's improvement in recent and estimated operating results and credit measures. AAG's earnings and cash flow generation have outperformed our expectations for the past 12 months, following a period of government-mandated restrictions in the initial phase of the Covid-19 pandemic that materially reduced store traffic and the company's revenues,” the agency said in a press release.

S&P said it estimates adjusted EBITDA interest coverage will strengthen to about 2x through 2022 (compared with 1.2x in 2020), which is aligned with its previous requirement to stabilize the rating.

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