S&P lowers Heubach

S&P said it lowered its ratings on Heubach Group and its $610 million term loan due in 2029 and the revolving credit facility to B- from B. The 3 recovery rating remains unchanged, indicating meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“We expect that Heubach's leverage and cash-flow metrics will be significantly weaker than we previously anticipated. We think that the macroeconomic environment will prove more challenging for the rest of 2022 and in 2023, and will weigh on Heubach's profitability and cash generation,” S&P said in a press release.

The agency said it sees Heubach's adjusted EBITDA to plunge to about €70 million in 2022 from about €120 million in fiscal 2021 (pro forma), partly driven by exceptional costs of about €30 million.

The outlook is negative.

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