Research Update: Fortna Group Inc. Outlook Revised To Negative On Forecast For Continued Cash Flow Deficits And Declining Liquidity - S&P Global Ratings’ Credit Research

Research Update: Fortna Group Inc. Outlook Revised To Negative On Forecast For Continued Cash Flow Deficits And Declining Liquidity

Research Update: Fortna Group Inc. Outlook Revised To Negative On Forecast For Continued Cash Flow Deficits And Declining Liquidity - S&P Global Ratings’ Credit Research
Research Update: Fortna Group Inc. Outlook Revised To Negative On Forecast For Continued Cash Flow Deficits And Declining Liquidity
Published Dec 18, 2024
9 pages (3763 words) — Published Dec 18, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Fortna Group Inc. has generated material free operating cash flow (FOCF) deficits year to date as of the end of the third quarter (ended Sept. 30, 2024), which it has funded using borrowings from its revolving credit facility. We now forecast the company's FOCF will remain negative into 2025, which we believe it will continue to fund with borrowings from its revolver such that its liquidity weakens further through 2025. Therefore, we now believe there is a heightened risk that Fortna?s liquidity position will become strained in 2025 if its bookings, revenue conversion, or margin trends do not improve and reduce its cash flow deficits. We revised our outlook on the company to negative from stable and affirmed our 'B-'

  
Brief Excerpt:

...Fortna Group Inc. has generated material free operating cash flow (FOCF) deficits year to date as of the end of the third quarter (ended Sept. 30, 2024), which it has funded using borrowings from its revolving credit facility. We now forecast the company's FOCF will remain negative into 2025, which we believe it will continue to fund with borrowings from its revolver such that its liquidity weakens further through 2025....

  
Report Type:

Research Update

Issuer
Fortna Group, Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
Buy Now

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Fortna Group Inc. Outlook Revised To Negative On Forecast For Continued Cash Flow Deficits And Declining Liquidity" Dec 18, 2024. Alacra Store. May 12, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Fortna-Group-Inc-Outlook-Revised-To-Negative-On-Forecast-For-Continued-Cash-Flow-Deficits-And-Declining-Liquidity-3301688>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Fortna Group Inc. Outlook Revised To Negative On Forecast For Continued Cash Flow Deficits And Declining Liquidity Dec 18, 2024. New York, NY: Alacra Store. Retrieved May 12, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Fortna-Group-Inc-Outlook-Revised-To-Negative-On-Forecast-For-Continued-Cash-Flow-Deficits-And-Declining-Liquidity-3301688>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.