(Finance) – S&P Global Ratings has “BB-” rating confirmed on PiaggioItalian vehicle manufacturer listed on Euronext Milan, worsening the outlook from “positive” to “stable” due to the deleveraging delay.
The ratings agency says Piaggio performed below deleveraging expectations, largely due to market headwinds which had a negative impact on its revenues and EBITDA. It now expects Piaggio’s revenues to fall 15% this year to around 1.7 billion euros from 2.0 billion euros in 2023 and to recover only slightly in 2025, to 4%.
Despite one profitability resilience better than expectedwith adjusted EBITDA margin expected at 14.3% in 2024 and 14.7% in 2025, up from 13.9% in 2023 and 12.3% in 2022, absolute EBITDA is estimated to remain below 2023 levels (277 million euros) over the next two years.
S&P expects this, coupled with limited discretionary cash flow due to continued payments of considerable dividendsi, will result in adjusted funds from operations (FFO) to debt falling to 26% in 2024 from 31% at year-end 2023, and which will remain below 30% also in 2025.