Research Update: Infopro Digital Group Downgraded To 'B-' On COVID-19-Related Deleveraging Constraints, Refinancing Risk; Outlook Stable

France-based B2B information and services company Infopro Digital Group B.V. is up against pressures from the cancellation of tradeshows and other face-to-face activities due to COVID-19-related social distancing and stay-at-home measures, and the group's B2B activities will likely suffer from expected high bankruptcy rates across small and midsized enterprises in the coming years. We consequently forecast Infopro Digital will face lower-than-expected earnings and cash flow generation in 2020, driving its S&P Global Ratings-adjusted leverage above 9x and a free operating cash flow contraction toward €25 million from €45 million-€50 million over the past two years. We are therefore downgrading Infopro Digital to 'B-' from 'B', and lowering to 'B+' from 'BB-' our issue rating on the group's super senior revolving

...- France-based B2B information and services company Infopro Digital Group B.V. is up against pressures from the cancellation of tradeshows and other face-to-face activities due to COVID-19-related social distancing and stay-at-home measures, and the group's B2B activities will likely suffer from expected high bankruptcy rates across small and midsized enterprises in the coming years. - We consequently forecast Infopro Digital will face lower-than-expected earnings and cash flow generation in 2020, driving its S&P Global Ratings-adjusted leverage above 9x and a free operating cash flow contraction toward 25 million from 45 million-50 million over the past two years. - We are therefore downgrading Infopro Digital to 'B-' from 'B', and lowering to 'B+' from '##-' our issue rating on the group's super senior revolving credit facility and to 'B-' from 'B' our rating on its senior secured debt. - The stable outlook balances our expectations that Infopro Digital's credit metrics will remain elevated...

Research Update