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S&P Upgrade Cirsa Enterprises From B to B+[S] As Firm Mandates EUR 600mn Deal

CONSUMER CYCLICALS


  • The upgrade reflects Cirsa's strong operating performance and market share gains, leading to a projected decrease in leverage to 4.8x by end-2023 and trending toward 4.5x, driven by FOCF/Debt remaining above 5%.
  • Cirsa today announced EUR 600mn in supply via a 5NC2 Fixed and a tap of their ’28 FRN to refinance the EUR 390m ’25 FRN and partially refinance other lines. S&P see the transaction as leverage neutral given they already consolidated PIK lines to be refinanced while noting the de-risking of the maturity profile.
  • 9M23 revenue growth of 21.5% YoY has been driven by organic growth and disciplined M&A.
  • Regulatory uncertainty poses a risk, but Cirsa's diversified portfolio in terms of geographies and products mitigates this risk.
  • Rating upside is seen as limited over the next year but could materialise over LT on adj-EBITDA leverage <4x and FOCF/Debt >10%.

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