We anticipate that the operating performance of France-headquartered SPCM S.A. will remain resilient in 2016, benefiting from cheaper raw materials and the stability of the majority of its end-markets, despite weaker volumes from the oil and gas sector. The downward revision of our liquidity assessment to adequate from strong factors in our view that headroom under financial covenants may weaken to slightly below 30% under our base case, even though liquidity remains comfortable. We are affirming our 'BB+' long-term credit and issue ratings on SPCM and revising our recovery rating on its senior unsecured notes to '3' from '4'. The stable outlook reflects our expectation that the company will post EBITDA above €330 million in 2016 and funds from operations
