S&P lifts Sika view to stable

S&P said it revised the outlook on Sika AG to stable from negative, reflecting a view that the company will deliver ongoing positive free operating cash flow in the coming years.

The agency said it also factors in the company's commitment to an A- rating and to ensuring a seamless integration of its proposed Parex acquisition.

S&P also affirmed the company's A- long-term and A-2 short-term issuer credit ratings.

Sika will continue benefiting from supportive market conditions in the next 18- to 24-months, the agency said.

The company will experience ongoing healthy demand from the construction industry and trends such as increasing sophistication and changes in building standards, energy efficiency with a focus on environmentally-friendly solutions, S&P said.

The ratings also consider the highly fragmented construction chemicals industry, the agency said.

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