...- We expect revenue at Germany-based health care provider GHD Verwaltung GesundHeits GmbH Deutschland (GHD) will decline by about 8.0%-9.0% in 2024, after 3.2% growth in 2023 mainly due to the change in perimeter following the sale of Vitalcare in April 2024. Its S&P Global Ratings-adjusted EBITDA margin should moderate to 6.5%-7.0% from 7.0% in 2023, given the continuous challenges in homecare. - At the same time, we anticipate that GHD will be able to fund its day-to-day business needs through cash balances and the generation of positive free operating cash flow (FOCF) of 12 million-13 million in 2024. However, we see rising refinancing risks given the maturity of its 360 million term loan B (TLB) in August 2026. In our view, FOCF might be pressured by likely higher interest charges in a scenario where the company would refinance its debt in the next 12 months. - We have revised our assessment on GHD's preference shares, which we now see as equity. However, in our view, the company's...
