Austrian Distributed Power Provider Al Alpine AT Bidco On Watch Negative On Weaker Performance Prospects

We believe Al Alpine, which generated €211 million reported EBITDA in 2019, will post weaker operating results in 2020 and 2021 due to lower demand for its Waukesha branch and because of COVID-19 disruptions, while recovery prospects for 2021 are still uncertain. We anticipate organic revenue decline in 2020 and, although the company is taking cost-cutting measures in the adverse environment, we anticipate weaker profitability and credit ratios. We are therefore placing our 'B' rating on Al Alpine on CreditWatch negative. We are also placing our issue and recovery ratings on CreditWatch negative. The CreditWatch placement indicates that we are likely to lower the rating by one notch during the next 90 days once we can assess the full impact

...June 2, 2020 - We believe Al Alpine, which generated 211 million reported EBITDA in 2019, will post weaker operating results in 2020 and 2021 due to lower demand for its Waukesha branch and because of COVID-19 disruptions, while recovery prospects for 2021 are still uncertain. - We anticipate organic revenue decline in 2020 and, although the company is taking cost-cutting measures in the adverse environment, we anticipate weaker profitability and credit ratios. - We are therefore placing our 'B' rating on Al Alpine on CreditWatch negative. We are also placing our issue and recovery ratings on CreditWatch negative. - The CreditWatch placement indicates that we are likely to lower the rating by one notch during the next 90 days once we can assess the full impact of the pandemic on Al Alpine. We currently forecast lower profit margins and increased leverage over the next two years. MADRID (S&P Global Ratings) June 2, 2020--S&P Global Ratings today took the rating actions listed above. So far...

Ratings Action