Moody’s alters Creation view to stable

Moody’s Investors Service said it revised its outlook for Creation Technologies Inc. to stable from positive and affirmed its B3 ratings on the company and its term loan due 2028.

The agency explained the stable outlook reflects an expectation for persistently higher leverage of around 6x and pressure on cash flow generation in the next 12 months.

This pressure is largely driven by continued supply chain disruptions and component shortages, which are negatively impacting revenue and earnings as well as elevating inventory levels with unfinished goods. Although there are sporadic signs of easement in the supply chain, the timing of significant improvement and subsequent cash flow generation is uncertain over the next year,” the agency said in a press release.

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