S&P stabilizes Energy Holdings view

S&P said it revised the outlook on Energy Holdings (Cayman) Ltd. (ECI) to stable from negative and affirmed the B- issuer credit rating and first-lien, senior secured term loans and the CCC rating on its second-lien term loan.”

The pandemic drove ECI's leverage to extreme heights in 2020, but that level is falling. Reduced demand, coupled with additional Covid-19 related costs, translated into negative S&P Global Ratings-adjusted EBITDA in the second quarter of 2020. Revenues bounced back fairly quickly, however, buoyed by strong demand for the company's products that go into home appliances,” the agency said in a press release.

S&P noted ECI’s S&P Global Ratings-adjusted debt to EBITDA climbed above 11x in 2020.

The outlook reflects the forecast that the robust residential housing market and general macroeconomic conditions should reduce ECI's adjusted debt to EBITDA to the 6x area in 2021.

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