S&P moves idverde view to negative

S&P said it changed its outlook for idverde (Amorica Lux Sarl) to negative from stable but affirmed the B- ratings on the company and its senior secured term loan.

“The outlook revision on idverde reflects our anticipation of slower-than-expected deleveraging and negative free operating cash flow (FOCF) over the coming two years, as well as its deteriorating liquidity position. idverde's constraints stem from cost inflation, tight labor markets, and delayed improvement in the underperforming U.K. business, despite solid sales growth in most of the group's geographies during the first half of 2022,” S&P said in a press release.

The weak outlook reflects the higher likelihood of a lower rating if continued high exceptional costs and a longer-than-expected recovery at underperforming divisions kept leverage above 10x and erode liquidity further, the agency said.

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