S&P bumps Ali up to investment grade

S&P said it raised its ratings on Ali Holding Srl and Ali Group North America Corp.'s senior secured $2.25 billion term loan B to BBB- from BB+.

“Ali's fast deleverage path is commensurate with an investment-grade rating. We anticipate that Ali will continue strengthening its balance sheet and consequently its leverage ratios, thanks to its strong cash flow generation expected to be dedicated to debt reduction. Ali's S&P Global Ratings-adjusted debt to EBITDA materially improved in fiscal 2023 to 2.3x, from 5.3x in the same period a year ago,” S&P said in a press release.

Ali gets about half its revenue from U.S. sales. The agency said it expects a healthy U.S. job market to deliver resilient demand but warned wage inflation may pressure margins temporarily.

The outlook is positive.

© 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.