Thursday 29 September 2016

Fitch affirms Abans at ‘BBB+(lka) with Stable Outlook

Fitch Ratings has affirmed Abans PLC’s National Long-Term Rating at ‘BBB+(lka)’ with a Stable outlook. Fitch has also affirmed the National Long-Term Rating on Abans’ unsecured redeemable debentures at ‘BBB+(lka)’ and its outstanding commercial paper at National Short-term Rating of ‘F2(lka)’.

The ratings reflects Fitch’s expectation that the company will maintain net leverage, as measured by lease-adjusted net debt to operating EBITDAR (excluding Abans Finance PLC), below 5.5x, the level at which Fitch would consider negative rating action, over FY17-FY20 (financial year ending 31 March).

Abans’ leverage will be restrained by modest levels of capex and better working capital management amid the weakening operating environment. However, Fitch does not expect Abans’ credit profile to improve to the extent that positive rating action will be warranted, unless there is significant deleveraging.
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