Fitch upgrades Hillman Solutions to ’BB’ on debt reduction

Investing.com -- Fitch Ratings has downgraded Sappi Limited’s Long-Term Issuer Default Rating (IDR) to ’BB’ from ’BB+’ with a Stable outlook, the agency announced Thursday.

The rating agency also lowered Sappi Papier Holding GmbH’s senior unsecured debt rating to ’BB’ from ’BB+’.

The downgrade reflects Fitch’s expectation that Sappi will exceed previous negative leverage thresholds through fiscal years 2026-2029. The company’s gross leverage reached 4.5x and net leverage hit 4.3x at the end of fiscal year 2025, up from 2.7x and 2.3x respectively in FY24.

Weaker-than-expected performance in FY25 and additional debt to fund cash shortfalls contributed to the leverage increase. Fitch projects deleveraging will occur but only to 2.6x gross by FY29.

The Stable outlook is based on expectations that free cash flow will turn neutral in FY26 and become sustainably positive from FY27 onward. This improvement will be supported by suspended dividends, reduced capital expenditure, and the continued ramp-up of paper machine 2 at Sappi’s Somerset mill.

Sappi’s FY25 EBITDA of $464 million reflected pressure from intensifying global trade tensions, which led to a broad slowdown, lower consumer confidence, and declining selling prices across segments. A weaker U.S. dollar reduced pulp profitability in South Africa while oversupply in global paper markets weighed on paper operations.

Fitch expects market conditions to improve in FY26, though remaining historically weak, with EBITDA projected at $479 million. Demand for dissolving wood pulp should stay robust, but pricing recovery may be slow due to market conditions.

The company’s free cash flow was deeply negative in FY25 due to lower EBITDA, high capital expenditure of $496 million related to the PM2 conversion, an $85 million dividend, and a $65 million working-capital outflow.

In December 2025, Sappi signed a non-binding letter of intent to form a 50/50 European graphic paper joint venture with UPM. This would reduce Sappi’s exposure to direct sales volume of graphic paper to less than 20% from about 40%. The joint venture remains subject to approvals and is not factored into Fitch’s rating case.

Fitch noted that Sappi’s product portfolio is stronger and typically broader than many packaging peers, with applications across textiles, consumer goods, foodstuff, pharmaceuticals, packaging, automobiles, and paper products.

The rating agency indicated that a further downgrade could occur if Sappi fails to reduce EBITDA gross leverage below 3.5x by FY27, maintains EBITDA margins below 9%, or experiences sustained negative free cash flow.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com – U.K. stocks were higher after the close on Thursday, as gains in the Industrial Transportation, Mining and Travel & Leisure sectors led shares higher.

At the close in London, the Investing.com United Kingdom 100 rose 0.47%.

The best performers of the session on the Investing.com United Kingdom 100 were Smurfit WestRock PLC (LON:SWR), which rose 5.16% or 139.00 points to trade at 2,835.00 at the close. Meanwhile, Ashtead Group PLC (LON:AHT) added 4.70% or 225.00 points to end at 5,010.00 and JD Sports Fashion PLC (LON:JD) was up 3.55% or 2.80 points to 81.72 in late trade.

The worst performers of the session were Informa PLC (LON:INF), which fell 3.29% or 30.60 points to trade at 899.00 at the close. Smith & Nephew PLC (LON:SN) declined 2.76% or 34.50 points to end at 1,214.50 and Entain PLC (LON:ENT) was down 2.19% or 16.60 points to 743.20.

Rising stocks outnumbered declining ones on the London Stock Exchange by 985 to 775 and 548 ended unchanged.

Gold Futures for February delivery was up 2.02% or 85.20 to $4,309.90 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January fell 2.04% or 1.19 to hit $57.27 a barrel, while the February Brent oil contract fell 2.01% or 1.25 to trade at $60.96 a barrel.

GBP/USD was unchanged 0.31% to 1.34, while EUR/GBP unchanged 0.24% to 0.88.

The US Dollar Index Futures was down 0.98% at 97.80.

Investing.com – Spain stocks were higher after the close on Thursday, as gains in the Financial Services & Real Estate, Consumer Services and Consumer Goods sectors led shares higher.

At the close in Madrid, the IBEX 35 rose 0.72% to hit a new all time high.

The best performers of the session on the IBEX 35 were International Consolidated Airlines Group SA (BME:ICAG), which rose 2.72% or 0.12 points to trade at 4.53 at the close. Meanwhile, Banco Bilbao Vizcaya Argentaria SA (BME:BBVA) added 2.34% or 0.44 points to end at 19.42 and Unicaja Banco SA (BME:UNI) was up 1.80% or 0.05 points to 2.71 in late trade.

The worst performers of the session were Naturgy Energy Group SA (BME:NTGY), which fell 6.65% or 1.74 points to trade at 24.42 at the close. SOLARIA ENERGIA Y MEDIO AMBIENTE (BME:SLRS) declined 2.29% or 0.39 points to end at 16.61 and Repsol (BME:REP) was down 1.90% or 0.31 points to 16.00.

Rising stocks outnumbered declining ones on the Madrid Stock Exchange by 111 to 84 and 15 ended unchanged.

Shares in Banco Bilbao Vizcaya Argentaria SA (BME:BBVA) rose to all time highs; up 2.34% or 0.44 to 19.42. Shares in Unicaja Banco SA (BME:UNI) rose to all time highs; rising 1.80% or 0.05 to 2.71.

Gold Futures for February delivery was up 2.02% or 85.40 to $4,310.10 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January fell 2.05% or 1.20 to hit $57.26 a barrel, while the February Brent oil contract fell 2.03% or 1.26 to trade at $60.95 a barrel.

EUR/USD was up 0.55% to 1.18, while EUR/GBP unchanged 0.24% to 0.88.

The US Dollar Index Futures was down 0.98% at 97.80.

Investing.com – Portugal stocks were lower after the close on Thursday, as losses in the Utilities, Technology and Consumer Goods sectors led shares lower.

At the close in Lisbon, the PSI declined 0.31% to hit a new 1-month low.

The best performers of the session on the PSI were Mota Engil SGPS SA (ELI:MOTA), which rose 5.77% or 0.26 points to trade at 4.84 at the close. Meanwhile, Teixeira Duarte (ELI:TDSA) added 3.85% or 0.02 points to end at 0.65 and Semapa (ELI:SEM) was up 1.90% or 0.32 points to 17.20 in late trade.

The worst performers of the session were EDP Energias de Portugal SA (ELI:EDP), which fell 1.98% or 0.08 points to trade at 3.70 at the close. Ren Redes Energeticas Nacionais SGPS SA (ELI:RENE) declined 1.98% or 0.07 points to end at 3.22 and EDP Renovaveis (ELI:EDPR) was down 1.97% or 0.23 points to 11.46.

Falling stocks outnumbered advancing ones on the Lisbon Stock Exchange by 14 to 12 and 4 ended unchanged.

Brent oil for February delivery was down 2.03% or 1.26 to $60.95 a barrel. Elsewhere in commodities trading, Crude oil for delivery in January fell 2.04% or 1.19 to hit $57.27 a barrel, while the February Gold Futures contract rose 2.04% or 86.00 to trade at $4,310.70 a troy ounce.

EUR/USD was up 0.55% to 1.18, while EUR/GBP unchanged 0.24% to 0.88.

The US Dollar Index Futures was down 0.98% at 97.81.

Investing.com – Netherlands stocks were higher after the close on Thursday, as gains in the Basic Materials, Consumer Goods and Industrials sectors led shares higher.

At the close in Amsterdam, the AEX gained 0.35%.

The best performers of the session on the AEX were Akzo Nobel NV (AS:AKZO), which rose 3.55% or 1.92 points to trade at 56.00 at the close. Meanwhile, IMCD NV (AS:IMCD) added 2.85% or 2.10 points to end at 75.90 and Aegon Ltd (AS:AEGN) was up 2.20% or 0.14 points to 6.32 in late trade.

The worst performers of the session were BE Semiconductor Industries NV (AS:BESI), which fell 2.53% or 3.55 points to trade at 136.90 at the close. CVC Capital Partners PLC (AS:CVC) declined 1.45% or 0.20 points to end at 13.63 and ASM International NV (AS:ASMI) was down 1.09% or 6.00 points to 542.80.

Rising stocks outnumbered declining ones on the Amsterdam Stock Exchange by 55 to 37 and 13 ended unchanged.

Shares in CVC Capital Partners PLC (AS:CVC) fell to all time lows; losing 1.45% or 0.20 to 13.63.

The AEX Volatility, which measures the implied volatility of AEX options, was unchanged 0.00% to 21.09.

Crude oil for January delivery was down 2.00% or 1.17 to $57.29 a barrel. Elsewhere in commodities trading, Brent oil for delivery in February fell 1.96% or 1.22 to hit $60.99 a barrel, while the February Gold Futures contract rose 2.03% or 85.90 to trade at $4,310.60 a troy ounce.

EUR/USD was up 0.54% to 1.18, while EUR/GBP unchanged 0.23% to 0.88.

The US Dollar Index Futures was down 0.98% at 97.80.

Investing.com – Italy stocks were higher after the close on Thursday, as gains in the Healthcare, Financials and Chemicals sectors led shares higher.

At the close in Milan, the Investing.com Italy 40 rose 0.56%.

The best performers of the session on the Investing.com Italy 40 were Brunello Cucinelli (BIT:BCU), which rose 2.94% or 2.74 points to trade at 96.00 at the close. Meanwhile, Davide Campari Milano SpA (BIT:CPRI) added 2.79% or 0.16 points to end at 5.89 and Buzzi Unicem (BIT:BZU) was up 2.75% or 1.40 points to 52.25 in late trade.

The worst performers of the session were Prysmian SpA (BIT:PRY), which fell 2.80% or 2.42 points to trade at 83.92 at the close. Leonardo SpA (BIT:LDOF) declined 2.06% or 1.00 points to end at 47.64 and Saipem SpA (BIT:SPMI) was down 1.63% or 0.04 points to 2.36.

Rising stocks outnumbered declining ones on the Milan Stock Exchange by 347 to 303 and 65 ended unchanged.

Crude oil for January delivery was down 1.95% or 1.14 to $57.32 a barrel. Elsewhere in commodities trading, Brent oil for delivery in February fell 1.93% or 1.20 to hit $61.01 a barrel, while the February Gold Futures contract rose 1.99% or 84.10 to trade at $4,308.80 a troy ounce.

EUR/USD was up 0.53% to 1.18, while EUR/GBP unchanged 0.23% to 0.88.

The US Dollar Index Futures was down 0.97% at 97.81.