S&P cuts Europcar Mobility

S&P said it downgraded Europcar Mobility Group SA and its debt to B- from BB- and placed all the company’s ratings on CreditWatch with negative implications.

“The coronavirus pandemic has affected the company at a challenging time, given liquidity is usually at a seasonal low in the first quarter, when earnings and cash flows are negative,” S&P said in a press release.

The agency said it calculates the group will need at least €160-€180 million of liquidity in the next three months to cover its fixed charges, including wages, fleet maintenance costs, capital expenditure and cash interest payments, net of forecast revenues.

“We estimate the group does not currently have sufficient available corporate liquidity, including cash and undrawn corporate RCF funds, to cover its net fixed charges over the next three months,” said S&P.

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