S&P rates Almaviva notes B+

S&P said it assigned its B+ long-term corporate credit rating to Almaviva SpA, an Italian provider of information technology services and outsourced customer relationship management for the public and private sectors. The outlook is stable.

In addition, S&P assigned a B+ issue rating to Almaviva proposed €250 million senior secured notes. The recovery rating is 3, indicating an expectation of meaningful recovery (rounded estimate: 55%) in the event of a payment default.

S&P said the ratings reflect Almaviva's modest cash flow generation due to a low-margin business mix, and its large exposure to the more volatile outsourced CRM business, particularly in Italy, which has weighed on profitability in the past two years.

These weaknesses are partly offset by the group's leading position as a mission-critical IT services provider to Italy's domestic transportation, logistics, and public administration sectors, and leading positions within Italy's and Brazil's outsourced CRM markets, S&P said in a news release.

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