Research Update: Swedish Capital Goods Company Epiroc AB Affirmed At 'BBB+'; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Swedish Capital Goods Company Epiroc AB Affirmed At 'BBB+'; Outlook Stable

Research Update: Swedish Capital Goods Company Epiroc AB Affirmed At 'BBB+'; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Swedish Capital Goods Company Epiroc AB Affirmed At 'BBB+'; Outlook Stable
Published May 06, 2025
Published May 06, 2025
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Epiroc?s credit metrics materially weakened in 2024 because of the SEK8.1 billion increase in S&P Global Ratings-adjusted debt, driven by substantial acquisition spending, and the larger-than-anticipated decline of its S&P Global Ratings-adjusted EBITDA margin to 22.9% (25.4% in 2023). As a result, its S&P Global Ratings-adjusted funds from operations (FFO) to debt reached 59% in 2024 (115% in 2023), eroding its financial flexibility at the current rating level. That said, we anticipate its adjusted FFO to debt will return to above 60% in 2025 and beyond, supported by moderately improving profitability and lower acquisition spending (about SEK2.8 billion in 2025 and SEK3.5 billion in 2026). We therefore affirmed our 'BBB+' ratings on Epiroc AB and its senior unsecured notes. The

  
Report Type:

Research Update

Ticker
157300D@SS
Issuer
Epiroc AB
GICS
Construction & Farm Machinery & Heavy Trucks (20106010)
Sector
Global Issuers
Country
Sweden
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Swedish Capital Goods Company Epiroc AB Affirmed At 'BBB+'; Outlook Stable" May 06, 2025. Alacra Store. May 21, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Swedish-Capital-Goods-Company-Epiroc-AB-Affirmed-At-BBB-Outlook-Stable-3364461>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Swedish Capital Goods Company Epiroc AB Affirmed At 'BBB+'; Outlook Stable May 06, 2025. New York, NY: Alacra Store. Retrieved May 21, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Swedish-Capital-Goods-Company-Epiroc-AB-Affirmed-At-BBB-Outlook-Stable-3364461>
  
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