S&PGR downgrades Perstorp to 'B-'
S&P Global Ratings believe the COVID-19 pandemic and resulting recession are likely to impact Perstorp Holding AB's sales and earnings.
S&PGR predicts that although Perstorp will likely implement several measures to preserve margin and cash, the group's credit metrics will weaken to levels below the previous base-case assumptions for 2020-2021. As a result, S&PGR are lowering to 'B-' from 'B' their issuer credit and issue ratings on Perstorp and its debt. The negative outlook reflects that, over the coming 12 months, Perstorp's leverage is suspected to surpass 8.5x, as well as the potential for further deterioration and weaker liquidity in the event of worsening macroeconomic conditions.