S&P shifts Forvia outlook to stable

S&P said it revised its outlook for Forvia SE (formerly Faurecia SE) to stable from negative and affirmed its BB ratings on the issuer and its senior unsecured notes.

“We anticipate Forvia will gradually deleverage in 2023 and 2024. The company reported strong organic growth of 18.6% in first-half 2023, supported by higher global auto production and 7.4% market outperformance driven by stronger volumes than the market average and inflation pass throughs to its auto original equipment manufacturer (OEM) clients. As a result, Forvia's reported operating margin increased to 5% from 3.7% a year ago and was broadly in line with second-half 2022 levels,” S&P said in a press release.

Additionally, the agency said it sees Forvia’s adjusted EBITDA margin widening to 8.7% for full-year 2023 from 7.9% in the first half and 7.2% in full-year 2022.

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