S&P rates Axactor B

S&P said it gave a B issuer rating to Axactor SE.

“Axactor has grown substantially since its founding in 2015, with about €2.2 billion estimated remaining collections (ERC) as of June 30, 2021. Our rating reflects Axactor's modest scale in the European debt purchasing and collection market, and the company's high adjusted leverage as indicated by a debt to adjusted EBITDA of 5.5x as of December 2020,” S&P said in a press release.

“We expect Axactor will reduce cash-adjusted leverage to about 4x-4.2x and statutory leverage to about 8.5x-9.5x by end-2022 supported by the economic rebound and favorable industry growth prospects. Regardless of whether we look at EBITDA including or excluding the add-back for collections, we expect Axactor's credit metrics will remain weaker than that of peers with better financial risk profiles, such as B2Holding or Intrum,” the agency added.

The outlook is stable.

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