Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER STAPLES
- Electrolux (NR/BBB[S]/NR) bonds widened in late 2023 due to a stretched balance sheet and negative margins.
- Danske argue that the market fails to account for potential triggers for tightening including cost-cutting, lower raw material costs, and stable demand potentially improving earnings by Q2.
- Demand, while likely not at the trough yet, shows signs of stabilizing; lower interest rates in 2024 could boost consumer sentiment and white goods sales.
- Further arguments are that a slight earnings improvement could reduce Electrolux's net debt to EBITDA below 3x and see an EBITDA margin of 6-7% (in line with S&P requirements) and that management has a strong incentive to maintain its IG profile to secure favourable credit terms for refinancing due in July 2025.
- Risks include further demand drops in 2024 or Electrolux abandoning its continued IG rating target though they could still consider asset sales or a rights issue to avoid doing so.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok