S&P Global Ratings has recently reaffirmed the BB rating with a stable outlook for doValue S.p.A., a move that reflects an overall positive assessment of the company’s financial health and future prospects.
S&P Global’s decision to maintain the BB rating with a stable outlook for doValue is based on several key factors:
Debt Management: One of the main reasons behind the rating confirmation is doValue’s effective management of debt. S&P Global expects that doValue’s net financial indebtedness will remain below three times the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) on a reported basis.
Solid Cash Flow Generation: doValue has demonstrated a continuous ability to generate solid operating cash flows (FOCF). This ability to regularly generate income and manage cash outflows is crucial for maintaining financial stability and meeting financial obligations.
Effective Management of Bonds: The company has issued significant amounts of senior secured bonds listed on the Luxembourg Stock Exchange, with maturities in 2025 and 2026. doValue’s ability to manage these bonds contributes to strengthening investor and rating agency confidence.
The maintenance of the BB rating with a stable outlook has several important implications for doValue:
Financial Stability: The rating indicates that S&P Global considers doValue capable of maintaining its financial position in the near future, despite global and sectoral economic challenges.
Investor Confidence: A stable BB rating can increase investor confidence in doValue’s financial health and risk management. This could positively influence the attractiveness of doValue’s shares and bonds in the market.
Access to Capital: A solid rating can facilitate doValue’s access to the necessary capital for growth and expansion, both through the stock market and bond market.
