S&P trims Iberconsa

S&P said it downgraded its ratings for Iberconsa (Bering III Sarl) and its term loan to CCC+ from B-. The 3 recovery rating on the loan is unchanged.

The company’s revolver is due in May 2024 and its term loan in November 2024.

“Iberconsa's persisting weak credit metrics over the past year could thwart the timely refinancing of the group's 2024 senior debt maturities. The group ended 2022 with negative FOCF of €32 million (-€13 million including the impact from blue chip swaps) and weak S&P Global Ratings-adjusted debt leverage of 12.7x (8.5x including the impact from blue chip swaps), notably due to inflationary pressure, sluggish demand and economic headwinds on foreign exchange rates.

“Although we assume Iberconsa's operating performance should recover gradually over the coming months, credit metrics and liquidity are likely to remain thin considering the relatively weak starting point,” S&P said in a press release.

The outlook is negative.

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