S&P raises Securitas

S&P said it raised its ratings on Securitas AB and its subsidiary Securitas Treasury Ireland DAC, as well as the issue rating on its senior unsecured debt to BBB from BBB-.

The agency said it expects a major leap in profitability in 2024 for Securitas. It forecasts S&P Global Ratings-adjusted EBITDA margins will widen to 8.9% in 2024, from 7.9% in 2023 and that Securitas will profit from lower exceptional costs of SEK 550 million in 2024, compared with SEK 1.35 billion in 2023.

“Driven by solid operating performance, we expect S&P Global Ratings adjusted leverage will decrease to 2.6x by year-end 2024, from 3.2x at year-end 2023. Furthermore, we forecast that FFO to debt will reach 26.5% in 2024, despite higher cash interest paid of SEK 2.3 billion compared to SEK 1.9 billion in 2023. This is because the company has refinanced $2.3 billion of the bridge loan used to finance the acquisition of Stanley at higher interest rates,” S&P said in a press release.

The outlook is stable.

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