Poland-Based Wood Panels Producer Pfleiderer Outlook Revised To Stable From Positive On Expected Weaker Credit Metrics

Poland-based wood panels producer Pfleiderer Group S.A. underperformed our expectations in 2017, notably in terms of profitability. We have revised our base-case forecasts downward and no longer think that there is a one-in-three chance that the company's credit metrics will strengthen to levels commensurate with a higher rating in the next 12 months. We are therefore revising our outlook on Pfleiderer to stable from positive, and affirming the 'B+' ratings. The stable outlook reflects our expectations that its S&P Global Ratings-adjusted EBITDA margins will improve and free operating cash flow generation will remain positive in 2018, despite higher capital investments and large payments to shareholders. LONDON (S&P Global Ratings) March 28, 2018--S&P Global Ratings today revised to stable from positive

...+ Poland-based wood panels producer Pfleiderer Group S.A. underperformed our expectations in 2017, notably in terms of profitability. + We have revised our base-case forecasts downward and no longer think that there is a one-in-three chance that the company's credit metrics will strengthen to levels commensurate with a higher rating in the next 12 months. + We are therefore revising our outlook on Pfleiderer to stable from positive, and affirming the 'B+' ratings. + The stable outlook reflects our expectations that its S&P Global Ratings-adjusted EBITDA margins will improve and free operating cash flow generation will remain positive in 2018, despite higher capital investments and large payments to shareholders. LONDON (S&P Global Ratings) March 28, 2018--S&P Global Ratings today revised to stable from positive its outlook on Poland-based wood panels producer Pfleiderer Group S.A. and its wholly-owned German subsidiary PCF GmbH. We affirmed our 'B+' long-term issuer credit ratings on the...

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