Research Update: French Auto Supplier Faurecia SE Downgraded To 'BB' As COVID-19 Weakens Deleveraging Prospects; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: French Auto Supplier Faurecia SE Downgraded To 'BB' As COVID-19 Weakens Deleveraging Prospects; Outlook Stable

Research Update: French Auto Supplier Faurecia SE Downgraded To 'BB' As COVID-19 Weakens Deleveraging Prospects; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: French Auto Supplier Faurecia SE Downgraded To 'BB' As COVID-19 Weakens Deleveraging Prospects; Outlook Stable
Published Jun 19, 2020
7 pages (3028 words) — Published Jun 19, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We believe that the consequences of COVID-19 will delay Faurecia SE's deleveraging prospects. We anticipate an 18%-22% revenue decline in 2020 and negative free operating cash flow of €400 million-€500 million this year, and only a gradual recovery in 2021, making it unlikely that the company will restore funds from operations (FFO) to debt above 30% and free operating cash flow (FOCF) to debt above 15% in the next 12-18 months. We are therefore lowering our long-term issuer credit rating on Faurecia to 'BB' from 'BB+'. The stable outlook reflects our belief that the company will gradually improve its credit metrics in 2021 such that FFO to debt and FOCF to debt will exceed 12% and 5%, respectively. Health and

  
Brief Excerpt:

...- We believe that the consequences of COVID-19 will delay Faurecia SE's deleveraging prospects. - We anticipate an 18%-22% revenue decline in 2020 and negative free operating cash flow of 400 million-500 million this year, and only a gradual recovery in 2021, making it unlikely that the company will restore funds from operations (FFO) to debt above 30% and free operating cash flow (FOCF) to debt above 15% in the next 12-18 months. - We are therefore lowering our long-term issuer credit rating on Faurecia to '##' from '##+'. - The stable outlook reflects our belief that the company will gradually improve its credit metrics in 2021 such that FFO to debt and FOCF to debt will exceed 12% and 5%, respectively....

  
Report Type:

Research Update

Ticker
FURCF
Issuer
Forvia SE
GICS
Auto Parts & Equipment (25101010)
Sector
Global Issuers
Country
France
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: French Auto Supplier Faurecia SE Downgraded To 'BB' As COVID-19 Weakens Deleveraging Prospects; Outlook Stable" Jun 19, 2020. Alacra Store. May 14, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-French-Auto-Supplier-Faurecia-SE-Downgraded-To-BB-As-COVID-19-Weakens-Deleveraging-Prospects-Outlook-Stable-2506383>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: French Auto Supplier Faurecia SE Downgraded To 'BB' As COVID-19 Weakens Deleveraging Prospects; Outlook Stable Jun 19, 2020. New York, NY: Alacra Store. Retrieved May 14, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-French-Auto-Supplier-Faurecia-SE-Downgraded-To-BB-As-COVID-19-Weakens-Deleveraging-Prospects-Outlook-Stable-2506383>
  
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