...Unsustainable Capital Structure: The group's unsustainable leverage and excessive refinancing risks constrain the ratings, despite an improvement in funds from operations (FFO). Fitch Ratings expects FFO adjusted gross and net leverage to remain in double digits until the maturity of the senior secured notes in 2018, as the intended series AAA EUR80m notes and PIK interest on its existing debt will increase the debt burden. Free cash flow (FCF) is likely to remain neutral to negative, hindering the ability to reduce leverage and constraining liquidity. Trading Performance Improving: Fitch expects modest revenue growth and flat to improving margins, driven by recovering construction activity in Europe and receding restructuring costs. We forecast healthy growth in two-thirds of Ideal Standard International SA's (ISI) end-markets for the remainder of the year, although the UK, where 27% of revenues are generated, will slow down. We expect modest growth in ISI's other core markets ¡ France,...
