S&P assigns ams AG, notes BB-

S&P said it assigned preliminary BB- ratings to ams AG and its proposed €1 billion of senior unsecured notes.

Proceeds along with the proceeds from a €1.65 billion rights issue will be used to boost ams stake in Osram Licht AG to 68.4% from 23.4%, refinance debt at Osram and pay related fees and expenses.

S&P said it forecasts a strong improvement in ams’ S&P Global Ratings-adjusted EBITDA margin to about 27%-28% in 2021, from about 20% in 2020.

The outlook is negative.

“The negative outlook reflects the possibility that we could lower the rating by one notch if ams' adjusted debt to EBITDA exceeds 3.5x in 2021. This could be the case if ams does not sell some of Osram's noncore assets, or if the integration of Osram diverges from our base-case expectations,” S&P said in a press release.

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