S&P boosts Amer Sports

S&P said it raised its ratings on Amer Sports Holding Oy and the company’s €1.7 billion senior secured term loan B and €315 million revolving credit facility due 2026 to B from B-.

“We estimate Amer Sports reduced materially its leverage in 2021, reaching S&P Global Ratings-adjusted debt to EBITDA of almost 9x from 12.5x in 2020. This is thanks to solid increments in sales of highly profitable product segments such as footwear and apparel (about 55% of sales estimated in 2021), as well as strict working capital and capital expenditure (capex) management over 2020-2021,” S&P said in a press release.

The agency said it is possible Amer Sports could increase profitability to close to 13% in 2022, though forecasted negative free operating cash flow constrains the company’s stand-alone creditworthiness. “Our B rating on Amer Sports embeds one notch of support from its main shareholder Anta Sports.”

The outlook is stable.

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