S&P turns HSE Finance view to negative

S&P said it revised its outlook for HSE Finance Sarl to negative from stable and affirmed the B issuer rating. The B issue and 3 recovery ratings on its notes are unchanged.

“Protracted weakness in consumer sentiment, driven by increasing cost of living, will drag on volumes in the next 12-24 months. HSE's revenue continued to decline in the second quarter of 2022 on the back of logistical challenges and reduced orders, resulting in total first-half 2022 sales that were 7.3% lower year on year. Since mid-February and the start of the Russia-Ukraine conflict, German consumers' sentiment has been depressed by inflationary concerns,” S&P said in a press release.

The agency said it estimates HSE’s S&P Global Ratings-adjusted leverage will widen to 6.5x-7x in 2022 before stabilizing below 6.5x in 2023.

“Nonetheless, we expect the company to continue generating cash flow, with FOCF after leases forecast to be at €25 million-€35 million per year over the next two years,” S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.