S&P alters Schoeller view to stable

S&P said it changed Schoeller Packaging BV’s outlook to stable from negative and affirmed the B- ratings on the company and its senior secured notes.

“Schoeller Packaging's revenue growth of 3.1% and EBITDA margin of 12.6% were above our expectations in 2020. The strong demand in the pooling and retail markets, combined with sales growth in the beverage market in Europe, offset the decline in the automotive business and lower demand from the agricultural and industrial segments. Improvements in pricing, a higher contribution to sales from more profitable products, and good cost control, resulted in expansion of the EBITDA margin,” the agency said in a press release.

S&P said it forecasts Schoeller Packaging's EBITDA margins will be close to 13% in 2022, leading to a reduction in leverage.

“The stable outlook indicates our expectation that Schoeller Packaging's leverage will stay below 6x and its liquidity will remain adequate in the coming 12 months, alongside negative or limited FOCF generation,” the agency said.

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