Fitch moves Winterfell outlook to stable

Fitch Ratings said it revised Winterfell Financing Sarl's (Stark) outlook to stable from positive and affirmed its B long-term issuer default rating. Fitch also affirmed the group's €1,795 million senior secured term loan at B+ with an RR3 recovery rating.

The outlook revision mainly reflects expected subdued near-term profitability due to a challenging market, negative-to-neutral free cash flow (FCF) for FY24 (financial year ending July) and FY25, and resulting high leverage. Its profitability has been hit by steep volume declines and deflationary pressures across its core geographic markets. We expect gradual deleveraging in FY25-FY27, driven by the combination of demand recovery, continued progress in cost-saving initiatives and ongoing turnaround of its U.K. business,” Fitch said in a press release.

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