Imark
Forumer storico
Eccola in pillole la situazione di Solvay... Fitch fa pure un ritratto della potenziale preda in termini di prezzo che verrà pagato per l'acquisizione e stima sia un 7x - 9x EBITDA per attività con un EBITDA margin superiore di 150 - 250 pb rispetto a quello delle correnti attività della chimica di Solvay, appunto integrando in tal modo il requisito di attività "ad alto margine"
Per Fitch appare certo che si tratterà di una singola "grande acquisizione"
Leverage molto basso ed in diminuzione nel 2009, posizione di liquidità molto forte, a prescindere dai proventi della cessione della farmaceutica ad Abbot Lab.
Fitch Affirms Solvay at 'A-'; Negative Outlook
22 Feb 2010 10:03 AM (EST)
Fitch Ratings-Frankfurt/London-22 February 2010: Fitch Ratings has today affirmed Belgium-based Solvay S.A.'s (Solvay) Long-term Issuer Default Rating (IDR) and senior unsecured ratings at 'A-', whilst affirming its Short-term rating at 'F2' and its subordinated hybrid bond at 'BBB'. Fitch has simultaneously removed all the ratings from Rating Watch Negative (RWN) and assigned a Negative Outlook to the Long-term IDR.
The rating action follows the completion of the sale of Solvay's pharmaceutical operations to Abbott Laboratories ('A+'/'F1'/Stable) and the publication of the group's FY09 preliminary results. While uncertainties remain about the nature of the activities in which the EUR4.5bn proceeds from the sale of Solvay's pharma division will be reinvested, Fitch believes that the company will continue to adhere to a conservative financial policy.
Based on the limited guidance provided by management, Fitch has assessed various acquisition scenarios assuming EBITDA-margin levels 150bp to 250bp higher than in its existing chemicals and plastics activities through the cycle (high valued-added activities) for the potential deal target and EBITDA multiples ranging between 7x and 9x.
The ratings factor in Fitch's view that Solvay's capital structure and financial standing remain commensurate with its current rating under these scenarios.
The Negative Outlook reflects the agency's concerns on the demand conditions in some of Solvay's core businesses. While the group's performance improved sequentially in FY09 and exceeded Fitch's forecasts, this was partly attributable to a particularly strong performance of the now divested pharma operations. Further pricing and margin pressure is expected in 2010 in the PVC segment and in the late-cycle soda ash market which could limit or delay Solvay's recovery.
To a lesser extent, the Negative Outlook also reflects the execution risk associated with a potential large-scale transaction and the uncertainties related to the group's future business mix.
Fitch had downgraded Solvay to 'A-' from 'A' on 28 September 2009 following the announcement of the sale of its pharmaceuticals operations for an enterprise value of EUR5.2bn, including a EUR4.5bn cash payment at closing, to Abbott. The downgrade mainly reflected the agency's view that the transaction exposed Solvay to increased business risk from the remaining cyclical chemicals and plastics activities.
Solvay's ratings continue to reflect its strong market positions, good sales diversification in terms of products, clients, regions and end-markets.
Solvay has taken measures to preserve cash during a challenging economic environment, including cost cutting and a substantial reduction in capital expenditures, which resulted in a decrease in net debt by EUR264m in FY09.
The company's lease-adjusted net debt, including equity credit/last 12 months (LTM) EBITDAR ratio, is estimated at 0.9x at FY09, compared with 1.0x at FYE08. In February 2010, Solvay received cash proceeds of EUR4.5bn for the sale of its pharma business, which brings the group into a net cash position, albeit temporarily as the proceeds are earmarked for redeployment into other activities.
Solvay's liquidity position remains strong. At FYE09, Solvay reported about EUR1.5bn in cash on its balance sheet and has access to a EUR1bn Belgian treasury bill programme and a USD500m US CP programme (both unused at FYE09). The two programmes are covered by a EUR850m bank facility, due October 2011, a EUR400m bank credit line maturing in January 2013, and further bilateral back-up credit lines (EUR550m), all unused at FYE09. Management maintained a strong focus on improving its working capital management, as well as cash preservation in a difficult operating environment. Solvay does not face significant debt maturities before 2014.
Per Fitch appare certo che si tratterà di una singola "grande acquisizione"
Leverage molto basso ed in diminuzione nel 2009, posizione di liquidità molto forte, a prescindere dai proventi della cessione della farmaceutica ad Abbot Lab.
Fitch Affirms Solvay at 'A-'; Negative Outlook
22 Feb 2010 10:03 AM (EST)
Fitch Ratings-Frankfurt/London-22 February 2010: Fitch Ratings has today affirmed Belgium-based Solvay S.A.'s (Solvay) Long-term Issuer Default Rating (IDR) and senior unsecured ratings at 'A-', whilst affirming its Short-term rating at 'F2' and its subordinated hybrid bond at 'BBB'. Fitch has simultaneously removed all the ratings from Rating Watch Negative (RWN) and assigned a Negative Outlook to the Long-term IDR.
The rating action follows the completion of the sale of Solvay's pharmaceutical operations to Abbott Laboratories ('A+'/'F1'/Stable) and the publication of the group's FY09 preliminary results. While uncertainties remain about the nature of the activities in which the EUR4.5bn proceeds from the sale of Solvay's pharma division will be reinvested, Fitch believes that the company will continue to adhere to a conservative financial policy.
Based on the limited guidance provided by management, Fitch has assessed various acquisition scenarios assuming EBITDA-margin levels 150bp to 250bp higher than in its existing chemicals and plastics activities through the cycle (high valued-added activities) for the potential deal target and EBITDA multiples ranging between 7x and 9x.
The ratings factor in Fitch's view that Solvay's capital structure and financial standing remain commensurate with its current rating under these scenarios.
The Negative Outlook reflects the agency's concerns on the demand conditions in some of Solvay's core businesses. While the group's performance improved sequentially in FY09 and exceeded Fitch's forecasts, this was partly attributable to a particularly strong performance of the now divested pharma operations. Further pricing and margin pressure is expected in 2010 in the PVC segment and in the late-cycle soda ash market which could limit or delay Solvay's recovery.
To a lesser extent, the Negative Outlook also reflects the execution risk associated with a potential large-scale transaction and the uncertainties related to the group's future business mix.
Fitch had downgraded Solvay to 'A-' from 'A' on 28 September 2009 following the announcement of the sale of its pharmaceuticals operations for an enterprise value of EUR5.2bn, including a EUR4.5bn cash payment at closing, to Abbott. The downgrade mainly reflected the agency's view that the transaction exposed Solvay to increased business risk from the remaining cyclical chemicals and plastics activities.
Solvay's ratings continue to reflect its strong market positions, good sales diversification in terms of products, clients, regions and end-markets.
Solvay has taken measures to preserve cash during a challenging economic environment, including cost cutting and a substantial reduction in capital expenditures, which resulted in a decrease in net debt by EUR264m in FY09.
The company's lease-adjusted net debt, including equity credit/last 12 months (LTM) EBITDAR ratio, is estimated at 0.9x at FY09, compared with 1.0x at FYE08. In February 2010, Solvay received cash proceeds of EUR4.5bn for the sale of its pharma business, which brings the group into a net cash position, albeit temporarily as the proceeds are earmarked for redeployment into other activities.
Solvay's liquidity position remains strong. At FYE09, Solvay reported about EUR1.5bn in cash on its balance sheet and has access to a EUR1bn Belgian treasury bill programme and a USD500m US CP programme (both unused at FYE09). The two programmes are covered by a EUR850m bank facility, due October 2011, a EUR400m bank credit line maturing in January 2013, and further bilateral back-up credit lines (EUR550m), all unused at FYE09. Management maintained a strong focus on improving its working capital management, as well as cash preservation in a difficult operating environment. Solvay does not face significant debt maturities before 2014.
