Bulletin: Adecco's Credit Metric Headroom Remains Tight Despite Improving Margins And Market Share Gains

LONDON (S&P Global Ratings) Nov. 10, 2023--S&P Global Ratings believes Adecco Group AG (Adecco)'s deleveraging will be somewhat slower than it expects in full-year 2023, although the company continues to expand and gain market share. We have lowered our topline growth and margin estimates for the year given the tough macroeconomic environment. In turn, we now forecast S&P Global Ratings-adjusted debt to EBITDA of about 2.4x compared with our previous expectations of about 2.0x, based on topline growth of about 1% and an S&P Global Ratings-adjusted EBITDA margin of 4.8% (2022: 4.5%). The latter continues to be affected by one-off integration costs of about $125 million this year and investment in selling, general, and administrative (SG&A) efficiencies. However, our forecasts

...November 10, 2023 LONDON (S&P Global Ratings) Nov. 10, 2023--S&P Global Ratings believes Adecco Group AG (Adecco)'s deleveraging will be somewhat slower than it expects in full-year 2023, although the company continues to expand and gain market share. We have lowered our topline growth and margin estimates for the year given the tough macroeconomic environment. In turn, we now forecast S&P Global Ratings-adjusted debt to EBITDA of about 2.4x compared with our previous expectations of about 2.0x, based on topline growth of about 1% and an S&P Global Ratings-adjusted EBITDA margin of 4.8% (2022: 4.5%). The latter continues to be affected by one-off integration costs of about $125 million this year and investment in selling, general, and administrative (SG&A) efficiencies. However, our forecasts for the coming years are largely unchanged, including S&P Global Ratings-adjusted debt to EBITDA improving to 1.5x in 2024 and 1.2x in 2025. This is because we expect slowing topline growth will be...

Bulletin