S&P lowers Labeyrie

S&P said it lowered its ratings for Financiere Labeyrie Fine Foods and its €455 million term loan B to CCC+ from B-, with the 3 recovery rating unchanged.

“We forecast Labeyrie's credit metrics to remain very weak in 2023 due mostly to challenging market conditions impacting its operating performance. Under our new base-case projections for fiscal 2023, the company's S&P Global Ratings-adjusted debt to EBITDA will likely stay very elevated at 11.5x-12x (including the payment-in-kind [PIK] loan that we treat as debt under our criteria) versus 12.2x in 2022. Funds from operations (FFO) cash interest will also likely remain weak at around 1.8x-2x (2.2x last year) because of higher interest costs on the TLB, which is not fully hedged,” S&P said in a press release.

For fiscal 2023, the agency said it estimates Labeyrie’s S&P Global Ratings-adjusted EBITDA will improve marginally to €60 million-€65 million compared to about €57 million last year, and be 30% down from its profitability level of two years ago of about €90 million.

The outlook is stable.

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