Consumer Plastics Producer Keter Upgraded To 'B-' On Improved Cash Flow And Performance; Outlook Stable

Keter Group B.V. (Keter) has achieved better-than-expected operational performance over the past six months, thanks to its effective turnaround plan and the overall stable demand for its products during the COVID-19 pandemic. For 2020 and 2021, we now forecast Keter's free operating cash flow (FOCF) will be positive and that its adjusted debt to EBITDA (excluding the shareholder loan) will decrease to 8.0x-8.5x from 11x in 2019, given higher EBITDA generation and working capital improvements. We are therefore raising our long-term issuer credit and issue rating on Keter to 'B-' from 'CCC+'. The outlook is stable, reflecting our view that operating performance should remain resilient over the next 12 months, supporting the deleveraging trend. PARIS (S&P Global Ratings) Sept. 10,

...September 10, 2020 - Keter Group B.V. (Keter) has achieved better-than-expected operational performance over the past six months, thanks to its effective turnaround plan and the overall stable demand for its products during the COVID-19 pandemic. - For 2020 and 2021, we now forecast Keter's free operating cash flow (FOCF) will be positive and that its adjusted debt to EBITDA (excluding the shareholder loan) will decrease to 8.0x-8.5x from 11x in 2019, given higher EBITDA generation and working capital improvements. - We are therefore raising our long-term issuer credit and issue rating on Keter to 'B-' from '###+'. - The outlook is stable, reflecting our view that operating performance should remain resilient over the next 12 months, supporting the deleveraging trend. PARIS (S&P Global Ratings) Sept. 10, 2020--S&P Global Ratings today took the rating actions listed above. Demand for Keter's products has only been slightly dampened by the pandemic, and should follow a positive trend in 2021....

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