...- We forecast that Italy-based financial services company Cerved Group S.p.A.'s leverage will remain at a high 7.5x-8.0x over the next 12-18 months due to softer-than-expected operating performance, mainly led by delays in contract renewals and challenging conditionals globally. - At the same time, the group's free operating cash flow (FOCF) will likely remain moderately positive, supporting sound liquidity. - We affirmed our 'B-' ratings on Cerved and the group's senior secured notes. The recovery rating on the notes remains at '3', indicating meaningful recovery prospects (50%-70%; rounded estimate: 55%). - The stable outlook reflects our view that Cerved will generate FOCF of 5 million-10 million per year and report a S&P Global Ratings-adjusted EBITDA margin gradually increasing toward 42% over the next 12-18 months, while leverage will remain at 7.5x-8.0x with funds from operations cash interest coverage of about 1.5x....
