...Unsustainable Leverage: The downgrade from `CCC' to `CC' reflects Fitch's view that Ideal Standard International SA's capital structure is likely to be restructured as it remains unsustainably leveraged. Funds from operations (FFO)-adjusted leverage will remain firmly in double digits without deleveraging until the group's senior secured notes become due in 2018. Refinancing risks remain material, despite the improving outlook for the operating environment. Positive Trading Momentum: Sales grew by 8.8% in 1H15, supported by growth in all four product segments and a favourable FX impact of 4.8%, which more than offset declines in France. We expect strong growth in the UK and the Middle East and North Africa, gradual recovery in Italy and Germany, and tough conditions in France in 2015. These markets comprised 83% of group's revenue in 1H15. Restructuring Results: Reported adjusted EBITDA grew to 9.7% in 1H15 from 4.5% during the prior period from improved pricing and the benefits of the...
