S&P lowers Technicolor view to negative

S&P said it revised to negative from stable the outlook on Technicolor SA.

The agency also said it affirmed the company's BB- long-term and B short-term corporate credit ratings.

The ratings reflects a forecast that Technicolor's operations and credit metrics will rebound in 2018 from a trough in 2017, but to a lower extent than initially expected given that the profitability of the Connected Home division is hindered by more expensive memory chips, S&P explained.

The agency said it now expects credit metrics in 2018 will be close to their limits for the current rating.

S&P said it also considered continued uncertainty on the evolution of memory chip prices over the coming months.

But the agency added that it does expect the technology segment to start growing again in 2018.

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