Bologna, April 12, 2019
CRIF Ratings has affirmed Ferrari S.p.A.’s (‘Ferrari’) Long-Term Issuer Rating at “BBB+”. The outlook remains “Stable”.
Ferrari is a leading manufacturer of luxury performance cars, with 9,251 cars sold and consolidated revenues of EUR 3.4bn in FY18. The rating analysis has been performed on Ferrari’s consolidated perimeter, including the parent company Ferrari NV. The rating has been assigned by CRIF Ratings on an unsolicited basis, without participation of the rated entity and relying only on publicly available information.
The affirmation of the rating reflects Ferrari’s sound operating performance and cash flow generation, which supported the Group’s conservative financial profile. In FY18, the net debt to EBITDA ratio edged down to 1.0x from 1.1x in FY17 and to 0.6x from 0.7x on an adjusted basis. Moreover, the Group further strengthened its gearing (net debt/equity down to 0.8x FY18 from 1.5x in FY17) and liquidity profile.
In the Agency’s view, Ferrari will comfortably cover the debt maturities over the 2019-2020 period (EUR 502m in sum) thanks to available liquidity sources of approx. EUR 1.3bn at YE18 (including the undrawn EUR 500m Revolving Credit Facility, due in November 2020) and the expected positive free cash flow (‘FCF’) generation, above EUR 200m per year after dividends.
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