S&P revised Quimper view to negative

S&P said it revised the outlook for Quimper AB (Ahlsell) to negative from stable and affirmed its B issuer rating.

The Nordic region is expected to suffer an economic contraction along with the rest of Europe, and the company’s adjusted debt-to-EBITDA ratio was 6.8, higher than most of its peers, S&P said.

“Likely solid free operating cash flow (FOCF) should mitigate the high leverage to some extent. We still forecast robust and positive FOCF in 2020 of over SEK 300 million after lease payments. Ahlsell has implemented measures to protect cash flows, such as reducing capital expenditure (capex), and postponing payment of value-added tax and social security costs,” the agency said in a press release.

The outlook is negative.

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