Fitch revises AutoScout24 view to negative

Fitch Ratings said it revised the outlook on Speedster Bidco GmbH (AutoScout24) to negative from stable and affirmed the issuer default rating at B. Fitch also affirmed the senior secured ratings of the company’s first-lien term loan at B+/RR3 and second-lien term loan at CCC+/RR6. The ratings reflect the February 2020 reallocation between first- and second-lien debt and the LeasingMarkt acquisition July, the agency said.

“AutoScout24’s IDR is constrained by its aggressive capital structure, which results in an estimated funds from operations (FFO) gross leverage of 11.5x in 2020 (including Finanzcheck). Specifically, the high leverage was due primarily to Covid-related discounts and additional debt from the LeasingMarkt acquisition. This would lead leverage to decline less rapidly, reaching 7.9x only in 2022,” Fitch said in a press release.

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