Fitch moves Flender outlook to negative

Fitch Ratings said it revised the outlook Flender International GmbH to negative from stable and affirmed its long-term issuer default rating. Fitch also affirmed the senior secured term loan's ratings at BB-/RR3.

“The revision of the outlook reflects our expectation of a challenging wind market outlook, which is further pressured by increasing inflationary pressures and supply chain issues. Fitch believes that the working capital buildup of the issuer is not likely to improve before wind original equipment manufacturers' (OEM)s operating environment and deliveries normalize,” the agency said in a press release.

Fitch said it forecasts Flender's funds from operations gross leverage will stay above its negative sensitivity of 6.5x for the next 18-24 months, before gradually improving towards the end 2024.

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