Moody’s, the Credit Reference Agency, recently instituted a rating change, upgrading 4L Technologies, Clover’s parent company, from a negative rating to stable.
Moody’s, the Credit Reference Agency, recently upgraded 4L Technologies, Clover’s parent company from negative to stable.
The rating change comes a year after Clover was downgraded and follows improvements in Clover’s liquidity following the sale of Clover Telecom in March this year.
Andrew MacDonald, Moody’s lead analyst for the company, said, “The change in outlook to stable from negative is directionally consistent with 4L Technologies’ recent improvements in operating performance, which we expect to continue. In conjunction with solid liquidity — albeit owing largely to a meaningful amount of excess cash balances — stabilisation if not broader strengthening of the company’s credit profile ahead of its 2019-2020 loan maturities should bode well for improved refinancing prospects.”
Clover is a significant player in the global office imaging sector and has grown through debt-funded acquisitions.
The company’s borrowing stands at $825 million (€701.3 million) with $65 million (€55.2 million) due for repayment or refinancing in May 2019 and $760 million (€646 million) due in June 2020. Cash balances at the end of June stood at nearly $180 million (€153 million). Sales for the twelve months ended 30 June 2018 were reported as $825 million (€701.3 million), down $300 million (€255 million) from their 2014 peak.
