S&P trims Triton UK Midco

S&P said it lowered the long-term issuer credit rating on Triton UK Midco (Synamedia Group) to B- from B, and the issue ratings on its first-lien secured term loan and revolver to B from B+.

“The downgrade reflects Synamedia Group’s weaker-than-anticipated operating performance resulting in significantly negative FOCF in FY2019 and FY202,” said S&P in a press release.

Synamedia reported about negative FOCF of $160 million in FY2019, compared with our previous expectation of negative $10 million on an adjusted basis. “This was driven by more severe revenue and EBITDA decline as well as delays in cash receipts due to the separation from Cisco. FOCF is now expected to remain around negative $50 million in FY2020 due to an ongoing 5%-6% revenue decline and very high exceptional costs of about $85 million,” said S&P.

The agency said it sees revenue continuing to fall in FY2020, but at a slower pace.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.