S&P cuts Superannuation

S&P said it lowered its ratings on Superannuation and Investments Finco Pty Ltd. and its bank loans to BB- from BB. The 3 recovery ratings on the loans are unchanged.

“We now believe that SIF is likely to operate with a leverage ratio (debt to adjusted EBITDA) of above 5x over the next 12 months. This is higher than our previous expectation of 4x-5x. Lower earnings than we previously forecast and increased debt issuance to fund investments in new technologies will drive the higher leverage,” S&P said in a press release.

The outlook is stable.

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