Fitch Raises InPost's Long-Term IDR to "BB+" from "BB" with a Stable Outlook

Fitch Ratings has raised InPost's long-term foreign and local currency ratings (IDRs) to "BB+" from "BB" and the national long-term rating to "BBB+(pol)" from "BBB(pol)", Fitch said in a statement. All ratings have a stable outlook.

Fitch also raised InPost's senior unsecured rating to "BB+" from "BB", the recovery rating is "RR4", it said.

"The upgrade reflects InPost's continued solid EBITDA growth, high EBITDA margins relative to competitors, and positive free cash flow (FCF) prior to acquisitions, both historically and in line with expectations, resulting in leverage metrics consistent with a 'BB+' rating," it said.

"The increase takes into account InPost's increasing diversification following acquisitions in the UK and organic growth in Europe. However, the company's scale and international presence remain below larger, integrated competitors," it added.

It was indicated that the stable outlook reflects the agency's expectations related to net EBITDA leverage, which will stabilize within the rating sensitivities for the "BB+" rating in the range of 1.5x to 2.3x. It added that this will be supported by EBITDA growth, driven by growing volumes and positive cash flow generation from operating activities. (PAP Biznes)

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