S&P revises Auxey Bidco outlook to negative; B rating affirmed

S&P revises Auxey Bidco outlook to negative; B rating affirmed

S&P Global Downgrades Auxey Bidco Ltd. to 'B' and Sets Negative Outlook

On February 27, 2026, S&P Global Ratings downgraded Auxey Bidco Ltd.’s long-term issuer credit rating to 'B' from 'B+', citing concerns over the company's financial stability. The agency also revised the outlook to negative, indicating a heightened risk of further downgrades within 12–18 months if key metrics deteriorate.

The downgrade reflects S&P's assessment of Auxey Bidco's liquidity constraints, elevated leverage ratios, and exposure to volatile market conditions. While the company has maintained its core operations, the rating agency noted "weakening cash flow generation and uncertain revenue visibility" as critical factors influencing the decision. The negative outlook underscores S&P's expectation that structural challenges—such as debt servicing pressures and industry-specific headwinds—could intensify, potentially necessitating additional credit adjustments.

This action contrasts with recent ratings activity by Fitch Ratings, which affirmed Auxey Midco Limited's (Alexander Mann Solutions) 'B' issuer default rating with a stable outlook on July 15, 2024. However, Fitch's evaluation pertains to a distinct entity, and S&P's focus on Auxey Bidco highlights entity-specific risks not necessarily reflective of broader market trends.

For investors, the downgrade signals increased caution regarding Auxey Bidco's creditworthiness. A 'B' rating, while still classified as speculative, indicates a higher default risk compared to the previous 'B+' level. S&P emphasized that any improvement in the rating would require demonstrable progress in debt reduction, operational efficiency, and consistent cash flow generation.

The company has not publicly commented on the rating action. Market participants are advised to monitor Auxey Bidco's financial disclosures and strategic initiatives for further clarity on its path to stabilization.

Source: S&P Global Ratings regulatory announcement
Source: Fitch Ratings, July 15, 2024, research note

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