Kleopatra Holdings 1 Outlook To Negative On Heightened Risk To Capital Structure; 'B-' Rating Affirmed

EBITDA at Kleopatra Holdings 1 S.C.A. (KP), the ultimate holding company of German packaging manufacturer Kloeckner Pentaplast, was lower than we expected in 2018, resulting in weaker credit metrics. Our revised revenue and EBITDA forecasts result in weaker credit metrics for the year-end 2019. Given that we now expect S&P Global Ratings-adjusted EBITDA to interest to fall to around 1.3x, adjusted debt to EBITDA to rise to about 11.3x, as well as negative free operating cash flow (FOCF) in 2019 (down from €9 million), we are revising our outlook on KP to negative. We are affirming our long-term 'B-' issuer credit rating on KP, our 'B-' issue rating on its senior secured facilities and our 'CCC' issue rating on the

...April 29, 2019 - EBITDA at Kleopatra Holdings 1 S.C.A. (KP), the ultimate holding company of German packaging manufacturer Kloeckner Pentaplast, was lower than we expected in 2018, resulting in weaker credit metrics. - Our revised revenue and EBITDA forecasts result in weaker credit metrics for the year-end 2019. - Given that we now expect S&P Global Ratings-adjusted EBITDA to interest to fall to around 1.3x, adjusted debt to EBITDA to rise to about 11.3x, as well as negative free operating cash flow (FOCF) in 2019 (down from 9 million), we are revising our outlook on KP to negative. - We are affirming our long-term 'B-' issuer credit rating on KP, our 'B-' issue rating on its senior secured facilities and our '###' issue rating on the notes it has issued. LONDON (S&P Global Ratings) April 29, 2019--S&P Global Ratings today took the rating actions listed above. The negative outlook reflects the heightened risk that the current capital structure will become unsustainable over the next 12...

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