S&P revises Foundever view to negative

S&P said it revised its outlook for Foundever Group SA to negative from stable and affirmed its BB- ratings on the issuer and its €1 billion term loan.

“We believe it is unlikely Foundever's EBITDA will rebound in 2024 due to its increased investment spending; however, we expect it will increase its EBITDA in 2025. We expect the company's S&P Global Ratings-adjusted EBITDA margins will contract to about 14% by the end of 2024, which compares with 16.4% in 2022 and 15.3% for the 12 months ended Sept. 30, 2023. Foundever's revenue and EBITDA declined in 2023 because of reduced customer interaction volume and delayed customer decisions related to new business,” S&P said in a statement.

The weaker outlook mirrors the view that Foundever’s leverage will increase and remain above 5x on a sustained basis, the agency said.

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