Moody's improves PRISA's score on account of its operational evolution within the final three years | Companies | EUROtoday

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Moody's has improved PRISA's score on account of its “robust” operational evolution and its effort to scale back debt. Likewise, it has valued the development in governance in recent times, throughout which it has carried out a monetary coverage “more conservative than in the past.” Thus, the communication group turns into B3 with outlook secure from Caa1 with outlook secure.

“The B3 rating reflects the company's robust operational and financial performance over the past three years; and the considerable improvement in its key credit metrics,” the worldwide score company defined in a public word.

Víctor García Capdevila, vice president-senior analyst at Moody's and principal analyst at PRISA, has additionally spoken alongside these traces, insisting that the development within the score is because of “more solid credit metrics, backed by better operating performance in recent years.” three years and the corporate's efforts to scale back its debt load, together with the issuance of debentures essentially convertible into shares.”

Strong progress

Moody's highlights that PRISA, a publishing firm THE COUNTRY y Five days, generated revenues of 947 million euros in 2023, with a rise of 11% year-on-year. This was pushed by 15% progress within the training enterprise, which reached €515 million, and seven% progress within the media enterprise, to €432 million.

On the opposite hand, the company emphasizes that company governance points are “important” for the score as a result of “PRISA's financial policy is more conservative than in the past.” “The company continues to demonstrate its willingness to reduce debt levels,” he famous.

“In February 2023, PRISA issued convertible bonds for 130 million euros to amortize part of the junior tranche of its syndicated debt. In January 2024, the company announced the issuance of up to another €100 million in convertible bonds to repay the remaining €87 million junior tranche of its syndicated debt. This has led to a change in the score of the company's financial strategy and risk management,” he underlines.

Thus, Moody's maintains that the B3 score demonstrates PRISA's “leadership positions” within the media market and the resilience of the training enterprise in Latin America, the place Santillana is a frontrunner. A place that’s bolstered by “the growing contribution of subscription models based on digital learning systems,” she provides.

The company considers that the corporate's liquidity place is satisfactory and argues for sustaining outlook assuming that “it will continue to have strong operating performance over the next 12 to 18 months.”

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