CSR Credit Rating Downgraded After Deal

Ratings agency Standard & Poor's has placed CSR Ltd on CreditWatch negative after the building materials group flagged the $690 million acquisition of glass maker Pilkington Australasia.

Standard & Poor's said CSR's plan to fund the acquisition though debt would weaken its financial profile and placed CSR's BBB-plus rating on CreditWatch with negative implications.

"Whilst this acquisition complements CSR's building products activities, the initial debt funding of these glass operations will weaken the company's financial profile," Standard & Poor's said.

CSR said its $690 million transaction would have an estimated, underwritten $180 million equity injection funded by the reintroduction of a dividend reinvestment plan (DRP).

"Standard & Poor's will seek to understand how quickly this acquisition debt will be amortised in light of the future DRP injection and the amount of future free cash flow that will be applied to debt reduction," the ratings agency said.

"The future capital needs and execution challenges of the glass operations, in combination with CSR's other capital growth needs, will also be considered.

Read the entire story on the source link below.

600450 CSR Credit Rating Downgraded After Deal glassonweb.com

See more news about:

Others also read

CSR Limited (CSR) announced today that Rob Sindel has indicated his intention to step down as CSR’s Managing Director and CEO within the coming 12 months.
CSR Limited (CSR) announced it has entered into an agreement to sell its Viridian Glass (Viridian) business to Crescent Capital Partners (Crescent) for a total cash consideration of approximately $155 million.
Australian Glass Group is excited to announce their brand new Tasmanian plant is up and running!
Global engineering and infrastructure advisory company Aurecon today announced the appointment of Managing Director Australia and New Zealand William Cox as its new Global Chief Executive Officer.
ClearVue to integrate Zurreal’s imaging with its clear solar PV glass for architectural glass applications and long-term outdoor and indoor advertising applications.
Smart building materials company ClearVue Technologies Limited is pleased to announce that it will be launching its technology and products for the European market at Glasstec 2018 in Dusseldorf, Germany.

Add new comment