...- Continued subdued demand for cars and mobile phones is hampering lighting manufacturer Bright Bidco B.V (Lumileds)'s free cash flow generation because gains from cost reduction programs, which will only be fully visible by 2020, do not compensate for the shortfall in revenue. - The pace of cash burn threatens the sustainability of the company's capital structure given Lumileds' high debt levels, with forecast debt-to-EBITDA significantly above 15x in 2019 and close to 10x in 2020; we continue to view the group's liquidity situation as adequate. - Therefore, on Sept. 6, 2019, S&P Global Ratings lowered its long-term issuer credit and issue-level ratings on Lumileds, to '###+' from 'B'. - The negative outlook reflects the possibility that, amid weakening industry conditions, Lumileds' performance could fail to recover, leading to prolonged weak earnings and cash flows....
