Research Update: Industrial Service Provider Bilfinger Upgraded To 'BB' On High Financial Flexibility, Business Recovery; Outlook Stable

With the closure of the Apleona sale, European industrial service provider Bilfinger has received €458 million in cash, providing high financial flexibility. We expect that Bilfinger will invest the vast majority into its operations organically or by acquisitions to strengthen its market position and increase its scale. Further, we expect Bilfinger SE's revenue and EBITDA margin to recover on the back of a sound economic environment and implemented cost measures. We now expect revenue to increase by about 10% and the S&P Global Ratings-adjusted EBITDA margin to rise to 4%-4.5% in 2021. We now assess the liquidity as strong, given an estimated more than €900 million in cash and a €250 million undrawn revolving credit facility (RCF) maturing in 2023.

...- With the closure of the Apleona sale, European industrial service provider Bilfinger has received 458 million in cash, providing high financial flexibility. We expect that Bilfinger will invest the vast majority into its operations organically or by acquisitions to strengthen its market position and increase its scale. - Further, we expect Bilfinger SE's revenue and EBITDA margin to recover on the back of a sound economic environment and implemented cost measures. We now expect revenue to increase by about 10% and the S&P Global Ratings-adjusted EBITDA margin to rise to 4%-4.5% in 2021. - We now assess the liquidity as strong, given an estimated more than 900 million in cash and a 250 million undrawn revolving credit facility (RCF) maturing in 2023. - We therefore raised our issuer credit and issue ratings on Bilfinger SE to '##' from '##-'. The recovery rating remains unchanged at '3' (rounded estimate of 65% recovery). - We base the stable outlook on our expectation of high financial...

Research Update