Warsaw - 15 May 2023: Fitch Ratings has upgraded technical services provider SPIE SA's Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BB'. The Outlook is Stable. Fitch has also upgraded SPIE's senior unsecured instrument rating to 'BB+' from 'BB'. The Recovery Rating remains at 'RR4'.
The upgrade reflects an improvement in SPIE's financial structure that sits comfortably at the high end of the 'BB' rating category. SPIE's increased financial flexibility is underpinned by the recent refinancing of its 2024 notes, gross debt reduction, and financial discipline in leverage, profitability and free cash flow (FCF) allocation. Fitch Ratings believe SPIE will prioritise investments in sustainable business growth and maintain its leverage metrics in line with its target over excessive shareholder distributions or aggressive debt-financed acquisitions.
Fitch believes SPIE's high exposure to new investments into energy transition, digitalisation, e-mobility and de-carbonation provides the company with stable and recurring earnings generation that support the Stable Outlook. The business profile remains reliant on acquisitions to maintain its competitive advantage and strong market position.