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.
A relatively small privately owned issuer, SAUR is not the most widely followed credit and is prone to price gaps in thin liquidity. Spreads currently price the name near the wide end of the BB+ space.
• SAUR was downgraded by Fitch and put on watch by S&P following FY23 results last week.
• While organic revenue grew 8.1%, EBITDA declines were driven by cost inflation and unfavourable weather.
• Working capital increased, taking FCF negative.• Management forecast double digit revenue growth, EBITDA margin improvement and commitment to deleveraging.
• To protect the rating some combination of inflation pass through pricing, cost savings and WC release will be required. Improvements in 2024 should be achievable to meet S&P’s requirements, although on a short-term time horizon there are certainly risks with visibility limited.
• ~€1.5bn of debt due in 2025 presents refinancing risk.
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.