S&P boosts Tendam Brands

S&P said it raised Tendam Brands SAU’s B+ from B, the issue rating on the group's super senior revolving credit facility to BB from BB- and the rating on the fixed- and floating-rate senior secured notes to B+ from B. The recovery ratings on the debt are unchanged at 1 and 3, respectively.

“Thanks to tight cost and working capital management, Tendam also achieved sizable cash generation. All of the group's brands recovered, supporting top-line growth,” S&P said in a press release.

Tendam's better-than-expected profitability and cash flow generation enabled it to fully amortize the loan guaranteed by the Instituto de Credito Oficial and lower leverage to about 3.9x-4.1x in FY2022, while keeping sizable free operating cash flow generation after lease payments, the agency noted.

The outlook is stable.

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