RE: Investment bank upgrade26 Mar 2024 12:16
Just looked up the Fitch rating - Most of it could have been written in dutch as far as I'm concerned (I'm not the most technically / accountancy minded person)... however at the bottom they list a number of factors which could (collectively or individually) lead to a further upgrade (listed below)...
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Gross debt/EBITDA below 3x
FCF margin above 3%
(Cash flow from operations (CFO) less capex)/total debt above 15%
EBITDA margin above 12%
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Gross debt/EBITDA above 3.5x
FCF margin below 2%
EBITDA margin below 10%
(CFO less capex)/total debt below 10%