Research Update: Mauser Packaging Solutions Holding Co. Downgraded To 'B-' On Sustained Weak Leverage Metrics; Outlook Stable

Continued weakness in cyclical end markets, such as oil and gas, aviation, and general industrial, and operating challenges will likely prevent Mauser from significantly improving volumes and profitability in 2021 after a challenging 2020. We forecast S&P Global Ratings-adjusted EBITDA of about $500 million-$550 million in 2021 will keep Mauser's debt leverage elevated with debt to EBITDA over 9x over the next 12 months. We are therefore lowering our rating on Mauser to 'B-' from 'B'. The stable outlook reflects our expectation that Mauser's EBITDA will recover somewhat over the next 12 months, modestly reducing debt leverage, and that it continue to comfortably cover interest expense while maintaining adequate liquidity. The stable on Mauser outlook reflects our expectation that debt

...- Continued weakness in cyclical end markets, such as oil and gas, aviation, and general industrial, and operating challenges will likely prevent Mauser from significantly improving volumes and profitability in 2021 after a challenging 2020. - We forecast S&P Global Ratings-adjusted EBITDA of about $500 million-$550 million in 2021 will keep Mauser's debt leverage elevated with debt to EBITDA over 9x over the next 12 months. - We are therefore lowering our rating on Mauser to 'B-' from 'B'. - The stable outlook reflects our expectation that Mauser's EBITDA will recover somewhat over the next 12 months, modestly reducing debt leverage, and that it continue to comfortably cover interest expense while maintaining adequate liquidity....

Research Update