S&P stabilizes Franklin Topco view

S&P said it revised its outlook for Franklin Ireland Topco Ltd., the parent of Planet, to stable from negative and affirmed the B- ratings.

We expect that in 2022-2023, Planet's revenue and EBITDA will significantly improve from depressed levels during the pandemic. In 2022, we anticipate gross revenue will recover to about €330 million and adjusted EBITDA will improve to about €40 million from a negative amount in 2021. In the first five months of 2022, Planet reported EBITDA of €29 million, nearly €3.5 million above budget. This will lead the group's leverage to decrease significantly to 12x-14x in 2022 from very high levels in 2020-2021, making its capital structure more sustainable over the longer term,” S&P said in a press release.

The agency said it forecasts leverage retreating to 7x-8x in 2023 and free operating cash flow increasing to breakeven in 2023.

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