S&P shifts Intertrust view to negative

S&P said it changed the outlook to negative from stable but affirmed the BB+ long-term issuer credit ratings on Intertrust NV and Intertrust Group BV and the BB+ long-term issue and 3 recovery ratings on the group's €500 million senior notes.

“We expect weaker credit metrics in 2020 due to the ongoing transformation program, resulting in additional margin pressure. That said, we still expect revenue will increase by about 3% in 2020, given its strong (about 80%) recurring nature and supported by some inorganic growth in the period. The most predominant effect on the company is from a margin perspective since we anticipate that S&P Global Ratings-adjusted EBITDA margin will fall to about 35% from the 41.7% we previously projected,” S&P said in a press release.

The outlook mirrors the slower-than-anticipated deleveraging and resulting limited rating headroom, as well as the possibility of a downgrade if the company falls materially behind the agency’s 2021 credit metrics forecast, S&P said.

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