Standard & Poor“s (S&P) downgraded 4 December 2008 the long-term corporate credit rating of Greek glass container manufacturer Yioula Glassworks SA to B from B+ with a “stable” outlook.
S&P also cut…
Standard & Poor“s (S&P) downgraded 4 December 2008 the long-term corporate credit rating of Greek glass container manufacturer Yioula Glassworks SA to B from B+ with a “stable” outlook. S&P also cut the senior unsecured debt rating of the company to B- from B. The downgrade was prompted by the lower-than-expected earnings and cash flow of the company as well as worries that its credit profile is not likely to improve in the difficult operating conditions, S&P analyst Izabela Listowska said. The weak operating cash flow is forecast to affect liquidity and the group“s ability to cut its debt. On the other hand, S&P takes into account the dominant position of Yioula on the domestic market, its diversified product portfolio and adequate profitability. At the end of September 2008 the company“s debt was EUR 290 million (USD 368 million). The outlook indicates the leading market positions of Yioula, its relatively recession-resistant products and its ongoing ability to largely recover input cost inflation which will enable it to sustain its credit profile, Ms. Listowska explained. The agency expects improvements in cash flow and liquidity in the near term which could be achieved through more balanced spending.