S&P rates Almaviva, loan B

S&P said it gave B ratings to Almaviva Developpement SAS and its planned €290 million term loan. The loan’s recovery rating is 3, which indicates an estimated 50% recovery (rounded estimate) in default.

“Our rating reflects our view of Almaviva's modest size in the resilient French hospital market, sound profitability, and structurally positive FOCF that will support gradual deleveraging from 6.5x in 2021,” S&P said in a press release.

S&P said it estimates the S&P Global Ratings-adjusted debt to EBITDA will exceed 5x over the next two years.

The agency assigned a stable outlook. “The stable outlook reflects our view that Almaviva's focus on organic growth and efficiency improvement projects should enable its S&P Global Ratings-adjusted margins to gradually improve to 19%-20% in the next 12 months, translating into adjusted debt to EBITDA of about 6x, and fixed-charge coverage of up to 3.5x,” S&P said.

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