S&P lowers Rovensa, term loan

S&P said it lowered to B- from B the rating on Root Bidco Sarl (Rovensa) and the issue rating on its senior secured term loan.

The outlook is stable.

S&P said weak demand in a challenging market environment and severe destocking in distribution channels during 2023 have weighed on Rovensa's operating performance.

“We anticipate that Rovensa's S&P Global Ratings-adjusted EBITDA will reach €145 million-€155 million in fiscal 2024 (ending June 2024), below our previous forecast of €160 million-€170 million,” S&P said in a news release.

“This will lead to a slower-than-expected deleveraging with S&P Global Ratings-adjusted debt to EBITDA remaining elevated at 7.8x-8.2x in fiscal 2024, clearly above the maximum of 7.0x we view as commensurate with a B rating.”

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