Research Update: Industrial Heat Exchange Solutions Supplier Arvos Downgraded To 'B-' On Weaker Profits Than Expected; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Industrial Heat Exchange Solutions Supplier Arvos Downgraded To 'B-' On Weaker Profits Than Expected; Outlook Stable

Research Update: Industrial Heat Exchange Solutions Supplier Arvos Downgraded To 'B-' On Weaker Profits Than Expected; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Industrial Heat Exchange Solutions Supplier Arvos Downgraded To 'B-' On Weaker Profits Than Expected; Outlook Stable
Published Nov 22, 2019
8 pages (3283 words) — Published Nov 22, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Despite healthy revenue growth of 10%, Arvos has been unable to improve its credit metrics over the past 12 months, since its EBITDA margin declined by about 200 basis points (bps) at the same time. As a result, Arvos' funds from operations (FFO)-to-cash interest coverage ratio will remain below 2.5x and we don't expect a recovery over the next 12-18 months. We are therefore lowering our issuer and issue ratings on ArvosLux to 'B-' from 'B'. The recovery rating remains unchanged at '3' (rounded estimate of 50% recovery). The stable outlook reflects our expectation that Arvos will be able to maintain FFO cash interest coverage of more than 1.5x and generate free operating cash flow (FOCF) over the next 12

  
Brief Excerpt:

...- Despite healthy revenue growth of 10%, Arvos has been unable to improve its credit metrics over the past 12 months, since its EBITDA margin declined by about 200 basis points (bps) at the same time. - As a result, Arvos' funds from operations (FFO)-to-cash interest coverage ratio will remain below 2.5x and we don't expect a recovery over the next 12-18 months. - We are therefore lowering our issuer and issue ratings on ArvosLux to 'B-' from 'B'. The recovery rating remains unchanged at '3' (rounded estimate of 50% recovery). - The stable outlook reflects our expectation that Arvos will be able to maintain FFO cash interest coverage of more than 1.5x and generate free operating cash flow (FOCF) over the next 12 to 18 months, supported by a solid order backlog....

  
Report Type:

Research Update

Issuer
Arvos LuxCo S.a.r.l.
GICS
Industrial Machinery (20106020)
Sector
Global Issuers
Country
Luxembourg
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: Industrial Heat Exchange Solutions Supplier Arvos Downgraded To 'B-' On Weaker Profits Than Expected; Outlook Stable" Nov 22, 2019. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Industrial-Heat-Exchange-Solutions-Supplier-Arvos-Downgraded-To-B-On-Weaker-Profits-Than-Expected-Outlook-Stable-2345896>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Industrial Heat Exchange Solutions Supplier Arvos Downgraded To 'B-' On Weaker Profits Than Expected; Outlook Stable Nov 22, 2019. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Industrial-Heat-Exchange-Solutions-Supplier-Arvos-Downgraded-To-B-On-Weaker-Profits-Than-Expected-Outlook-Stable-2345896>
  
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