S&P trims Adler Pelzer

S&P said it downgraded Adler Pelzer Holding GmbH and its secured bond to CCC+ from B-.

“We continue to forecast material cash burn for Adler in 2020. We think market conditions for the auto supplier industry have further weakened since our most recent forecast for global light vehicle sales on March 23, 2020, when we expected a 15% decline in sales volumes in 2020. In our view, the economic effects of Covid-19 will be longer and more intense than previously expected, and we consequently lowered our macro forecasts on April 16, 2020,” S&P said in a press release.

S&P said it continues to expect the drop in sales and an economic contraction to hurt Adler's topline, which the agency projects will drop by 18%-20% this year.

The outlook is stable.

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