S&P trims Mangrove LuxCo III

S&P said it trimmed its ratings on Mangrove LuxCo III and its senior secured notes to CCC+ from B-.

“The global recession resulting from the Covid-19 pandemic has materially affected Mangrove's end markets, in particular, the oil and gas industry. Low commodity prices have led to muted demand from customers in the oil and gas industry. Furthermore, Mangrove's revenue has been negatively affected in the heating, ventilation, and air conditioning (HVAC), and refrigeration segment, by delays in project execution,” S&P said in a press release.

Revenue for 2020’s first nine months fell by about 9% and new orders by 27% compared to last year’s level.

“Likely weak credit metrics and negative FOCF over the next 12 to 18 months will hamper Mangrove's deleveraging prospects, raising concerns that financial commitments might not be sustainable over the long term. We estimate that debt to EBITDA will increase to about 17x in 2020 due to the sharp drop in EBITDA. For 2021, we project a decline to below 8.5x on an expected recovery in EBITDA,” S&P said.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.