Research Update: Film Roll Manufacturer Taghleef Upgraded To 'BB' On Strong Performance And Net Debt Reduction; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Film Roll Manufacturer Taghleef Upgraded To 'BB' On Strong Performance And Net Debt Reduction; Outlook Stable

Research Update: Film Roll Manufacturer Taghleef Upgraded To 'BB' On Strong Performance And Net Debt Reduction; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Film Roll Manufacturer Taghleef Upgraded To 'BB' On Strong Performance And Net Debt Reduction; Outlook Stable
Published Apr 26, 2022
7 pages (2984 words) — Published Apr 26, 2022
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Taghleef's strong revenue growth of 40% in 2021 resulted in a 47% EBITDA increase and a record-high EBITDA margin of 15%. We think that the company's average EBITDA margin will return to about 12% in 2022-2023, consistent with historical performance, but that lower working capital requirements compared with 2021 will improve free operating cash flow (FOCF) and further strengthen credit ratios. We therefore upgraded Taghleef Industries Holdco Ltd., the holding company of Taghleef, to 'BB' from 'BB-', and raised our issue rating on its debt to 'BB' from 'BB-'. The stable outlook indicates our expectation that Taghleef's debt to EBITDA will be 1.3x-1.6x in 2022-2023 and its funds from operations (FFO) to debt will hover at about 50%. The stable

  
Brief Excerpt:

...- Taghleef's strong revenue growth of 40% in 2021 resulted in a 47% EBITDA increase and a record-high EBITDA margin of 15%. - We think that the company's average EBITDA margin will return to about 12% in 2022-2023, consistent with historical performance, but that lower working capital requirements compared with 2021 will improve free operating cash flow (FOCF) and further strengthen credit ratios. - We therefore upgraded Taghleef Industries Holdco Ltd., the holding company of Taghleef, to '##' from '##-', and raised our issue rating on its debt to '##' from '##-'. - The stable outlook indicates our expectation that Taghleef's debt to EBITDA will be 1.3x-1.6x in 2022-2023 and its funds from operations (FFO) to debt will hover at about 50%....

  
Report Type:

Research Update

Issuer
Taghleef Industries Holdco Ltd.
GICS
Paper Packaging (15103020)
Sector
Global Issuers
Country
United Arab Emirates
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Film Roll Manufacturer Taghleef Upgraded To 'BB' On Strong Performance And Net Debt Reduction; Outlook Stable" Apr 26, 2022. Alacra Store. May 07, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Film-Roll-Manufacturer-Taghleef-Upgraded-To-BB-On-Strong-Performance-And-Net-Debt-Reduction-Outlook-Stable-2829607>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Film Roll Manufacturer Taghleef Upgraded To 'BB' On Strong Performance And Net Debt Reduction; Outlook Stable Apr 26, 2022. New York, NY: Alacra Store. Retrieved May 07, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Film-Roll-Manufacturer-Taghleef-Upgraded-To-BB-On-Strong-Performance-And-Net-Debt-Reduction-Outlook-Stable-2829607>
  
US$ 225.00
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