S&P boosts RENK

S&P said it raised its ratings on RENK GmbH and its €520 million senior secured notes due 2025 to B+ from B. The recovery rating on the notes is unchanged at 3 (50%-70%; rounded estimate: 55%).

“We expect RENK's credit metrics will strengthen over the next 12 months, and it will generate positive FOCF, offering the potential for further debt reduction. In our view, the forecast volume increase in 2023 and 2024 will maintain the aftermarket business at about 30% of revenue since it mainly depends on the installed base and RENK's ability to service it. Together with ongoing management measures to improve profitability, we expect EBITDA margins of 18%-19% in 2023 and 19%-20% in 2024,” S&P said in a statement.

The outlook is positive.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.