Fitch revises EG Group outlook to stable

Fitch Ratings said it revised EG Group Ltd.’s outlook to stable from positive and affirmed the long-term issuer default rating at B-.

“The change of outlook to stable reflects our expectations of its funds from operations (FFO) gross leverage remaining high at above 8.5x, which together with neutral to negative free cash flow (FCF), translates into increasing refinancing risks in the absence of other cash preservation measures. While leverage is not reducing below 7.5x as previously anticipated, it is still in line with the rating,” the agency said in a press release.

Fitch cited a weaker economic outlook, cost pressures and higher interest cost for the change in its expectations.

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