S&P Global Ratings lifted its outlook on Sika AG to stable from negative as the specialty chemicals company resolved a 3.5-year takeover dispute with Compagnie de Saint-Gobain AG.
The agreement with Saint-Gobain will stabilize Sika's shareholder structure and allow management to focus on operations and growth strategy, according to the rating agency.
"The stable outlook reflects our forecast that Sika will keep delivering positive free operating cash flow (FOCF) in the coming years, based on robust EBITDA generation and moderate capital expenditure," S&P Global Ratings said.
The rating agency also affirmed its A-/A-2 long- and short-term issuer credit ratings on Sika.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
