S&P revises Visteon view to stable

S&P said it revised the outlook for Visteon Corp. to stable from negative and affirmed its BB- issuer rating.

“Visteon’s sales and margins have recovered, and despite further Covid-19 pandemic risks, we expect credit metrics will improve in 2021 and 2022. In addition to continuing to increase its top line faster than its end markets (6% growth over the market in the third quarter), the company’s gross margins have recovered significantly as restructuring efforts are showing benefits,” S&P said in a press release.

The outlook considers the forecast Visteon will maintain its debt-to-EBITDA ratio below 4x and free operating cash flow to debt above 5% in 2021 and 2022, as margins improve on higher volumes and lower restructuring costs, the agency said.

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