Fitch upgrades InPost logistics' rating to 'BB+', with stable outlook
Fitch rating agency has upgraded the long-term ratings (IDR) for Amsterdam listed parcel-locker operator InPost to 'BB+' from 'BB', with a stable outlook, Fitch said in a statement on its website.
"Fitch Ratings has upgraded InPost S.A.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'BB+' from 'BB' and its National Long-Term Rating to 'BBB+(pol)' from 'BBB(pol)'. All ratings are on Stable Outlook," Fitch said in the statement.
The ratings agency has also upgraded InPost's senior unsecured rating to 'BB+' from 'BB' previously. The Recovery Rating is 'RR4'.
"The upgrade reflects InPost's consistently solid EBITDA growth, high EBITDA margins relative to peers and positive free cash flow (FCF) before acquisitions, both historically and expected, resulting in leverage metrics that are consistent with a 'BB+' rating," Fitch assessed.
"The upgrade considers InPost's increasing diversification following acquisitions in the UK and organic growth in Europe. However, InPost's scale and international presence remain below that of larger, integrated peers," it added.
The agency pointed out that the stable outlook reflects its experts' expectation that EBITDA net leverage will stabilise within the rating sensitivities for a 'BB+' rating, ranging from 1.5x to 2.3x.
"This will be supported by EBITDA growth, driven by increasing volumes and positive FCF generation," Fitch assessed.
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