Capgemini: S&P puts on negative watch list
(CercleFinance.com) - S&P has announced that it has placed its long-term "BBB+" credit rating on Capgemini on its "Negative watch list," after the announcement of its planned acquisition of Altran for 3.
6 billion euros in cash, before taking into account 1.4 billion euros in net financial debt.
This decision reflects a likely one-notch downgrade once the transaction is finalised (expected in late 2019 or early 2020), given the expected weakening of the net debt-to-EBITDA ratio, due to financing.
However, the rating agency still recognises that the acquisition would improve Capgemini's size, market positions, diversification and sales growth prospects, while boosting its profitability and cash flow.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
6 billion euros in cash, before taking into account 1.4 billion euros in net financial debt.
This decision reflects a likely one-notch downgrade once the transaction is finalised (expected in late 2019 or early 2020), given the expected weakening of the net debt-to-EBITDA ratio, due to financing.
However, the rating agency still recognises that the acquisition would improve Capgemini's size, market positions, diversification and sales growth prospects, while boosting its profitability and cash flow.
Copyright (c) 2019 CercleFinance.com. All rights reserved.