Fitch changes view on Forvia to stable

Fitch Ratings said it revised the outlook on Forvia's to stable from negative and affirmed the issuer default rating at BB+ and senior unsecured instrument ratings at BB+/RR4.

“The revision of the outlook reflects our expectation that Forvia'S EBITDA net leverage will reduce below 2.5x by 2024, driven by the cash proceeds from the disposal program, which will be channeled to debt repayment. Fitch views Forvia's ratings headroom due to leverage as limited until the second disposal program is completed. Fitch expects the additional €1 billion of divestments will lower EBITDA net leverage towards 1.5x, although this is expected to be towards 2025 and 2026,” the agency said in a press release.

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