S&P changes Fortive view to negative

S&P said it revised the outlook for Fortive Corp. to negative from stable, citing the effect of the pandemic on the company’s business.

“Fortive withdrew its guidance for 2020 as the coronavirus pandemic began to slow its sales, which creates uncertainty around its revenue and operating margins this year,” S&P said in a press release.

“The negative outlook reflects our expectation that Fortive's adjusted leverage will remain elevated at above 3x due to the pandemic and delayed spin-off of Vontier, which is higher than we previously anticipated. We also expect the company to focus on generating cash flow and deleveraging such that its leverage returns below 3x in 2021,” S&P said.

The agency affirmed Fortive’s BBB rating.

© 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.