Engineering Materials Producer Envalior Downgraded To 'B-' On Elevated Leverage; Outlook Stable - S&P Global Ratings’ Credit Research

Engineering Materials Producer Envalior Downgraded To 'B-' On Elevated Leverage; Outlook Stable

Engineering Materials Producer Envalior Downgraded To 'B-' On Elevated Leverage; Outlook Stable - S&P Global Ratings’ Credit Research
Engineering Materials Producer Envalior Downgraded To 'B-' On Elevated Leverage; Outlook Stable
Published Dec 20, 2023
5 pages (2710 words) — Published Dec 20, 2023
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

Envalior's earnings were sharply depressed in 2023 by low demand, destocking, and high energy prices, combined with temporary arbitrage imports from Asia. We now estimate S&P Global Ratings-adjusted EBITDA (excluding management adjustments to reported EBITDA) will decline to an exceptional €145 million-€155 million in 2023, from €510 million in 2022; this implies a temporary peak in leverage of over 20x adjusted gross debt to EBITDA. 2024 is expected to bring more normalized energy prices and market conditions. We anticipate that adjusted EBITDA will recover to €350 million-€400 million in 2024, supported by a gradual improvement in market demand and the realization of higher-than-initially-anticipated synergies at Envalior, which was created through a merger. However, leverage is likely to remain elevated, with

  
Brief Excerpt:

...December 20, 2023 - Envalior's earnings were sharply depressed in 2023 by low demand, destocking, and high energy prices, combined with temporary arbitrage imports from Asia. We now estimate S&P Global Ratings-adjusted EBITDA (excluding management adjustments to reported EBITDA) will decline to an exceptional 145 million-155 million in 2023, from 510 million in 2022; this implies a temporary peak in leverage of over 20x adjusted gross debt to EBITDA. - 2024 is expected to bring more normalized energy prices and market conditions. We anticipate that adjusted EBITDA will recover to 350 million-400 million in 2024, supported by a gradual improvement in market demand and the realization of higher-than-initially-anticipated synergies at Envalior, which was created through a merger. However, leverage is likely to remain elevated, with adjusted gross debt to EBITDA of 10.5x-11.5x--this exceeds the 8x we view as the maximum commensurate with a 'B' rating. - We therefore lowered to 'B-' from 'B'...

  
Report Type:

Ratings Action

Issuer
Envalior Finance GmbH
Sector
Global Issuers
Country
Germany
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Engineering Materials Producer Envalior Downgraded To 'B-' On Elevated Leverage; Outlook Stable" Dec 20, 2023. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Engineering-Materials-Producer-Envalior-Downgraded-To-B-On-Elevated-Leverage-Outlook-Stable-3104560>
  
APA:
S&P Global Ratings’ Credit Research. (). Engineering Materials Producer Envalior Downgraded To 'B-' On Elevated Leverage; Outlook Stable Dec 20, 2023. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Engineering-Materials-Producer-Envalior-Downgraded-To-B-On-Elevated-Leverage-Outlook-Stable-3104560>
  
US$ 150.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.