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(Boursier.com) — Fitch Ratings threatens Forvia. The rating agency lowered the outlook associated with the ‘BB+’ long-term issuer default rating of the automotive supplier from ‘stable’ to ‘negative’. Fitch expects the net debt to Ebitda ratio to remain above 2 over the next 12 to 18 months despite asset sales intended to lighten its balance sheet. The extension of the deleveraging path is the result of an expected decline in revenues and an erosion of profitability due to lower production volumes. Downgrade is possible in the event of further underperformance, particularly in terms of free cash flow (FCF) generation, while the rating could be affirmed if performance matches the agency’s expectations.
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