S&P puts Atos on negative watch

S&P said it placed its BB ratings for Atos SE on CreditWatch with negative implications.

Recently, Atos announced that it agreed with financial sponsor EP Equity Investments to dispose of its legacy managed services and infrastructure arm, Tech Foundations, which will complete the reorganization plan that Atos launched last year, the agency said.

“We anticipate that the remaining entity Eviden will show high leverage over the next 12-18 months, with pro forma debt to EBITDA above 6x in 2023. That said, we believe improving earnings and free cash flows over the longer term should enable Eviden to gradually reduce leverage,” S&P said in a press release.

The negative watch reflects the likelihood of a one-notch downgrade for Eviden to BB-, the agency said.

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