S&P trims Sappi

S&P said it lowered the ratings for Sappi Ltd. and its issue ratings to BB- from BB.

“The impact of Covid-19 on Sappi's earnings has exceeded our initial estimates, given the company's exposure to textile end-markets and coated paper. We now believe Sappi's EBITDA will decline by about 50% year on year in fiscal 2020 (ending Sept. 30) to about $350 million, compared with our initial estimate of 15%-20% (to about $480 million), with a modest recovery of 26% in fiscal 2021,” S&P said in a press release.

S&P said it sees Sappi will begin deleveraging from fiscal 2021 from higher levels than it had initially forecasted.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.