S&P trims XSYS Germany

S&P said it lowered its ratings for XSYS Germany Holding GmbH and its first-lien debt to B- from B and revised the recovery rating to 4 (30%-50%; rounded estimate: 45%) from 3. The agency also downgraded the second-lien debt to CCC from CCC+. The recovery rating remains at 6 (0%-10%; rounded estimate: 0%).

“We have revised down our profitability expectations, specifically the S&P Global Ratings-adjusted EBITDA margin, to 26%-28% in 2024 from more than 32% for XSYS–a producer of printing consumables and equipment solutions to the packaging industry–because of subdued market dynamics, unfavorable customer mix, higher raw material prices, and exceptional costs,” the agency said in a press release.

S&P said it now forecasts XSYS’ adjusted debt to EBITDA will stay at about 10x in the next 12 months.

The outlook remains stable.

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