S&P revises Ashtead view to stable

S&P said it revised the outlook for Ashtead Group plc to stable from negative.

“Our outlook revision to stable reflects that Ashtead’s better operating performance than we expected gives it good ratings headroom despite the challenging operating environment. Although demand and volumes remain under pressure as a result of pandemic-related disruptions and uncertainty remains over the next few months, we expect Ashtead to maintain credit metrics comfortably commensurate with its current rating,” S&P said in a press release.

The agency said it sees adjusted leverage at around 2.2x-2.4x over the next two years and funds from operations to debt comfortably over 30% on a sustained basis, supported by positive free operating cash flow and moderate shareholder distributions.

Concurrently, S&P affirmed the BBB- ratings on Ashtead and its second-priority notes.

© 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.