Fitch revises Rovensa view to negative

Fitch Ratings said it revised Rovensa's (Root Bidco Sarl) outlook to negative from stable and affirmed its long-term issuer default rating and its senior secured rating at B. The recovery rating is RR4.

“The negative outlook reflects slower-than-previously expected deleveraging following a severe destocking trend in the crop nutrition and protection markets, delayed realization of synergies from recent acquisitions, and sizeable interest cost hindering deleveraging. Our projection indicates that Rovensa's EBITDA gross leverage will reach 7.3x in June 2024, but a gradual improvement is anticipated to 5.6x by June 2027 supported by cost savings and market normalization,” Fitch said in a statement.

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