Moody’s shifts Altadia view to negative

Moody’s Investors Service said it revised its outlook for Altadia (Timber Servicios Empresariales, SA) to negative from stable but affirmed the B2 ratings on the company and its €1.2 billion term loan and €75 million revolver.

“The negative outlook reflects expectations that softer end market demand will delay Altadia's deleveraging trajectory compared with Moody's previous estimates. Demand for Altadia's products is directly linked to the production volumes of ceramic tiles, which, in turn, are driven by overall construction activity. Furthermore, the production of ceramic tiles is natural gas-intensive. As such, Moody's expects the energy crisis in Europe, where Altadia generates the majority of its sales, along with high inflation and higher interest rates, to reduce demand for its products in 2023, pressuring earnings,” the agency said in a press release.

Moody’s said it sees the company’s gross leverage at around 6.7x for the last 12 months ended June 30 and to stay above 6x over the next 12-18 months.

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