S&P downgrades, withdraws Truvo

S&P said it lowered its long-term corporate credit rating on Truvo NV to CCC- from CCC.

The agency also lowered its issue rating on the company's €15 million senior secured term loan to CCC+ from B- and its rating on the €58 million payment-in-kind facility to C from CC.

S&P subsequently withdrew the corporate credit rating and issue ratings at the company's request.

The outlook was negative at the time of withdrawal.

S&P said the downgrade follows Truvo's operational underperformance in 2015 compared with the agency’s base case, including lower revenues and profitability, and higher working capital requirements. This led to weakening of the group's cash generation ability and liquidity.

According to recent trading, Truvo was able to control its operating expenses and hence improved its profitability in the first quarter of this year, S&P said.

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