Friday, March 4, 2016

Standard and Poor’s is considering increasing the rating of Valeo – The Point

The rating agency Standard and Poor’s was more optimistic Friday for the French automotive supplier Valeo, announcing that it could raise by one notch the debt rating of the company in two years according to a statement.

SP “has revised to positive from stable its outlook” on the group while maintaining unchanged its rating to “BBB” level granted to medium quality issuers but able to meet their obligations, explains the document.

This amendment reflects “the strong performance of Valeo in 2015, with solid growth in revenue and EBITDA (gross operating surplus) accompanied by an improvement in cash flow, “said SP.

” While we expect Valeo to issue new debt to fund acquisitions and Spheros Peiker announced in December, we believe this leaves a sufficient margin of maneuver “in financial terms, the agency notes.

a higher rating” will depend on the company’s ability to maintain a ratio of adjusted operating cash flow and debt comfortably above 45%, and adjust its appetite for new acquisitions “in order to maintain it, said SP.

jum / fpo / sg

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03.04.2016 11:02:31 – Paris, March 4, 2016 (AFP) – AFP © 2016

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