...- We expect Koninklijke Philips N.V. (Philips) will report a 25% year-on-year decline in adjusted EBITDA, up to 2 billion of total cash outflows, and an increase in adjusted leverage to 4.5x-5.0x at year-end 2022 due to persisting supply chain issues and costs related to the respiratory care device repair and replacement program. - In our base case, from 2023 the group's cash flow will stabilize and credit metrics significantly improve, with leverage back below 3x, as a result of its expected ability to deliver most equipment and solutions currently missing critical components and phase out the respiratory device repair and replacement program early next year. - We revised our outlook on Philips to negative from stable and affirmed our '###+' long-term issuer credit and issue ratings. - The negative outlook reflects uncertainty in the group's ability to turn the current inventory of semi-finished products to cash flow rapidly, since it will continue to rely on availability of components...
