Research Update: Keter Group B.V. Downgraded To 'CCC'; Rating Placed On CreditWatch Developing Pending Refinancing

Keter Group B.V. has not yet confirmed a refinancing plan for its €1,205 term loan B (TLB) maturing on Oct. 31, 2023 and its €102 million revolving credit facility (RCF) maturing on July 31, 2023. Completion of the refinancing is uncertain and is taking longer than expected, which in our view, increases overall liquidity risk. Keter's financial year 2022 performance was broadly aligned with our latest published expectations (dated November 2022), with adjusted debt to EBITDA excluding NCE estimated at about 7.5x-8x. We also note that we forecast 2023 S&P Global Ratings-adjusted EBITDA to revert to around or slightly below 2021 levels, due to lower input prices and benefits from Keter's cost saving programs initiated by management , with leverage

...- Keter Group B.V. has not yet confirmed a refinancing plan for its 1,205 term loan B (TLB) maturing on Oct. 31, 2023 and its 102 million revolving credit facility (RCF) maturing on July 31, 2023. Completion of the refinancing is uncertain and is taking longer than expected, which in our view, increases overall liquidity risk. - Keter's financial year 2022 performance was broadly aligned with our latest published expectations (dated November 2022), with adjusted debt to EBITDA excluding NCE estimated at about 7.5x-8x. We also note that we forecast 2023 S&P Global Ratings-adjusted EBITDA to revert to around or slightly below 2021 levels, due to lower input prices and benefits from Keter's cost saving programs initiated by management , with leverage remaining above 7x and funds from operations cash interest coverage at about 2.0x. - We lowered the long-term issuer credit rating on Keter, and our issue rating on its TLB and RCF, to '###' from 'B-' as we note uncertainty around the completion...

Research Update