S&P rates ams, notes BB-

S&P said it gave BB- ratings to ams AG and its senior unsecured notes.

The company owns 71% of Osram Licht AG after boosting its stake from 19.9% in July.

“Osram’s shareholders approved the domination and profit-and-loss transfer agreement on Nov. 3, 2020, which we expect will close by early 2021. This means ams will be able to reinforce its control and speed up Osram’s integration and turnaround ahead of potentially increasing its stake to up to 100% over time,” S&P said in a press release.

The company used euro- and dollar-denominated notes to help pay for the stake.

“The acquisition temporarily weakens ams' credit ratios, with pro forma S&P Global Ratings-adjusted debt to EBITDA peaking at about 3.8x in 2020 before gradually returning to about 3.2x in 2021,” the agency said.

The outlook is negative.

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