Fitch lowers West Technology

Fitch Ratings said it downgraded West Technology Group, LLC’s long-term issuer default rating to CCC+ from B-, its first-lien secured revolver and term loan to CCC+/RR4 from B/RR3 and the second-lien secured notes to CCC-/RR6 from CCC/RR6.

Before the downgrade the outlook was stable. Usually, Fitch does not give outlooks to issuers it rates CCC+ and below.

“The CCC+ rating reflects concerns about the company's negative FCF generation in 2023 and Fitch's forecast for negative FCF to continue. Fitch believes there is material execution risk associated with achieving sustained organic growth in its core offerings. West's leverage remains elevated, despite repayment of debt in FY23. The liquidity position of the company remains satisfactory, benefiting from divestment-related cash proceeds,” the agency said in a press release.

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