Weener Plastics Group B.V.

While Weener's growth expenditure continues to increase, we believe that FOCF will turn positive in 2019 to about €6 million. We expect S&P Global Ratings-adjusted leverage of 4.7x compared with 5.8x in 2018. Our 2018 S&P Global Ratings-adjusted net debt to EBITDA calculation only includes seven months of EBITDA contribution from Proenfar. The stable outlook reflects our expectation that Weener will continue to capitalize on its solid client relationships and leading niche market position in certain premium products. We anticipate annual organic revenue growth of 8% and modest positive FOCF in 2019. We expect adjusted leverage will improve to 4.7x from 5.8x in 2018. We view a downgrade as unlikely over the next 12 months. We could lower the rating

...S&P Global Ratings expects Weener Plastics Group B.V. (Weener) will maintain its industry position and long-standing customer relationships, leveraging on its recent contract wins. Weener's high customer retention rates are supported by its technological expertise and its ability to innovate. The company has already locked in a number of new contracts, and we thereby expect organic revenue growth of 8% for 2019. We expect credit metrics will improve in the near term. This will mainly stem from new contract wins, a reduction in exceptional costs, and the full year contribution of Proenfar. In 2018, cash flows were undermined by one-off costs relating to the Proenfar acquisition in May 2018, and consultancy services. We forecast EBITDA margins will improve to 19% in 2019 versus 17.5% in 2018. While Weener's growth expenditure continues to increase, we believe that FOCF will turn positive in 2019 to about 6 million. We expect S&P Global Ratings-adjusted leverage of 4.7x compared with 5.8x...

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