S&P trims Antolin

S&P said it lowered its ratings on Grupo Antolin-Irausa SAU and its senior secured debt to B- from B.

“The contraction in global automotive production has constrained Grupo Antolin's earnings over the last few years, pressuring profitability and fueling high adjusted debt to EBITDA of about 8x in 2020 and 2021. The increase in raw material costs (about 60% of total costs) that started last year has hindered a recovery in Grupo Antolin's profitability, with EBITDA margins hovering at about 5% since 2020, compared with 5.9% in 2019,” the agency said in a press release.

S&P said it forecasts Grupo Antolin will post S&P Global Ratings-adjusted EBITDA margins and debt to EBITDA of about 5% and 7x this year, respectively, with limited ability to materially deleverage over the next 12 months.

The outlook is stable.

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