...- We anticipate that persistently challenging auto market conditions will hurt France-based global auto supplier Faurecia SE's ability to reduce leverage as we had previously expected, after a 4.9 billion increase in adjusted debt linked to the acquisition of German auto supplier Hella on Feb. 1, 2022. - With S&P Global Ratings-adjusted EBITDA margin anticipated to stay below 9% and free operating cash flow (FOCF) only modestly positive this year, we estimate Faurecia will clearly miss our funds from operations (FFO)-to-debt and FOCF-to-debt downside triggers of 15% and 5%, respectively, in 2022, with an uncertain recovery trajectory in 2023 due to volatile auto production and widespread cost inflation. - We believe that Faurecia remains committed to undertaking remedial actions to improve its balance sheet, such as equity issuance and asset disposals, but turbulent capital markets could slow execution and delay leverage reduction. - We therefore revised our outlook on Faurecia to negative...
