Fitch rates Engineering Ingegneria B, cuts Centurion

Fitch Ratings said it assigned Engineering Ingegneria Informatica SpA a long-term issuer default rating of B with a stable outlook.

The agency downgraded Centurion Bidco SpA's long-term issuer default rating to B from B+. The outlook is stable.

Fitch withdrew Centurion's rating following its merger into Engineering Ingegneria Informatica.

The agency said it also downgraded Centurion's senior secured instrument rating to B from BB- and revised its recovery rating to RR4 from RR3 following significant increases in factoring.

The ratings on Centurion's debt instruments have been transferred to Engineering Ingegneria Informatica following the merger of the two entities, the agency said.

“The downgrade reflects the company's high leverage, weak coverage ratios and lower free cash flow through the forecast horizon,” the agency said in a news release.

“While the company has performed well in the past 12-months, it has not been sufficient to offset the increase in leverage following the acquisition.”

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