Groupe Bruxelles Lambert SA

The stable outlook reflects our expectation that GBL will maintain a well-diversified and liquid portfolio made up of assets with an average credit quality well within the investment-grade range, while maintaining a conservative approach to its leverage. We expect this will translate into its S&P Global Ratings-adjusted LTV ratio remaining well below 20%. We could lower the rating if GBL's leverage increased materially from current levels, with the S&P Global Ratings-adjusted LTV ratio increasing to 20% or more for a prolonged period. This could, for example, result from: A steep decline in equity markets not offset by debt reduction; Higher investment commitments to Sienna or large debt-financed portfolio additions; or Increased debt at controlling shareholder Parjointco, which solely relies on

...We expect the adjusted LTV to remain well below 20% over 2021-2022, underpinned by tight control and a solid track record. GBL's LTV on March 31, 2021, stood at 12.2% including S&P Global Ratings' adjustments (reported LTV of 6.3%), indicating ample financial flexibility, compared with our threshold of 20%. Also, the LTV has improved slightly, in comparison with 13.5% on Dec. 31, 2020, buoyed by a recovery in global financial markets and 530 million cash proceeds from Holcim's 2% stake disposal. We expect the holding to continue to actively manage its portfolio and maintain leverage well below 20% on an adjusted basis. We also note that the group has maintained it reported LTV below 10% for more than 10 years. The difference between the S&P Global Ratings-adjusted LTV and the reported LTV stems primarily from our adjustments related to investment commitments of 733 million at Sienna and a 836 million put option at Webhelp....

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