S&P revises Sumitomo Corp outlook to negative after SCSK tender offer

Investing.com -- S&P Global Ratings has downgraded Whirlpool Corp. to ’BB’ from investment grade, with a negative outlook, citing slower-than-expected improvement in credit metrics.

The rating agency reported that Whirlpool’s adjusted leverage reached 6x for the 12 months ending September 30, 2025, compared to 5.9x in the same period of 2024. The company’s performance has been hampered by weaker margins, particularly in the third quarter where ongoing EBIT margin declined 140 basis points year-over-year to 4.5%.

Competitive pressures have intensified as Asian competitors accelerated imports ahead of tariff implementation. While Whirlpool reported higher sales and market share growth in its North America major device appliance segment during the third quarter, supported by refreshing approximately 30% of its product portfolio, elevated flooring costs to help retailers stock new models and clear older inventory offset these gains.

S&P expects these costs will continue to weigh on margins through the rest of 2025 and into 2026. The agency projects 2026 demand will remain heavily weighted toward lower margin replacement volume, with discretionary demand improvements potentially not materializing until later in 2027.

The rating agency now forecasts adjusted EBITDA margins to improve approximately 70 basis points in 2026, following flat performance in 2025. This improvement is expected to be driven by pricing actions to offset tariff-related costs and benefits from recent cost reduction initiatives.

S&P also noted that proceeds from Whirlpool’s planned sale of its stake in Whirlpool India will be lower than previously anticipated. The company received $166 million from selling an 11% stake in November 2025 and plans to sell an additional 20%, which S&P estimates will generate about $250 million in 2026. Total proceeds are now expected to reach approximately $420 million, down from earlier projections of $550 million.

The combination of weaker margin forecasts, lower proceeds from the India stake sale, and relatively high dividend payments has resulted in reduced discretionary cash flow available for debt repayment. S&P now projects adjusted leverage will remain elevated at about 5.4x in fiscal 2025 and 4.9x in fiscal 2026.

Whirlpool faces upcoming debt maturities, with its revolving credit facility becoming current in May 2026 and $516 million of bonds maturing in November 2026. S&P expects the company will need to access capital markets for refinancing, potentially at higher pricing and with additional covenants.

The negative outlook reflects the possibility of a further downgrade within the next 12 months if Whirlpool continues to underperform expectations due to competitive pressures or deteriorating economic conditions.

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

Investing.com -- S&P Global Ratings has upgraded Lumexa Imaging Equity Holdco LLC to ’B+’ from ’B-’ following its initial public offering, with a stable outlook.

The upgrade reflects Lumexa’s reduced private equity control, with Welsh, Carson, Anderson & Stowe’s (WCAS) ownership declining to 30% post-IPO, down from a controlling stake. Public shareholders will own 26%, while employees, physicians, and health system partners will hold 44%.

S&P views this ownership change as "meaningfully credit positive" for Lumexa’s financial policy, as private equity investors typically favor higher leverage. WCAS will have just one seat on the nine-person board, with six independent members.

The rating agency expects Lumexa to reduce its leverage below 5x within a year from the current 7.4x. The company plans to use approximately $375 million of IPO proceeds to reduce debt, which would immediately lower leverage to about 5.3x.

Lumexa operates in the diagnostic imaging sector, which S&P believes will benefit from rising demand due to an aging population and scientific advances. The company is also positioned to capitalize on the shift toward lower-cost outpatient settings for diagnostic imaging.

Despite these positive factors, S&P notes some challenges, including wage inflation for radiologists and persistent reimbursement pressures. Medicare reimbursement, which represents about 24% of Lumexa’s 2024 revenue, has been relatively flat for the past decade, while commercial payers are limiting reimbursement increases.

The company is pursuing software tools, including AI modules, to improve radiologist productivity and offset margin pressure. Lumexa plans to focus on expanding its footprint by opening new locations, though profitability at these sites is initially weaker.

S&P could lower Lumexa’s ratings if leverage remains above 5x for more than a year, which might occur if the company pursues debt-financed acquisitions or faces significant increases in labor costs. Conversely, a rating upgrade could follow if Lumexa reduces leverage below 4x and maintains it at that level.

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

Investing.com - European stocks rose on Monday at the start of the last full trading week of the year, which includes several central bank policy decisions as well as a slew of delayed U.S. economic data releases.

The DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.7% and the FTSE 100 in the U.K. rose 1.1%. 

ECB leads central bank parade

The decision of the U.S. Federal Reserve last week to cut interest rates by a quarter-percentage point has boosted global sentiment moving towards the end of the year.

But gains are limited Monday at the start of a week strewn with risk events, including policy decisions from the European Central Bank and the Bank of England, as well as persistent concerns over a real estate meltdown in China.

The ECB meets on Thursday and is widely expected to hold its key rate at 2% for a fourth straight meeting. Traders will be looking to see if the policymakers signal a rate hike could be on the cards in 2026, given recent data has shown the economy grew 0.3% in the third quarter, much faster than the ECB had forecast in September.

The Bank of England’s decision is more uncertain, with Governor Andrew Bailey expected to change his view and tip the balance for a 5-4 vote to lower the central bank’s benchmark rate to 3.75% from 4.0%.

Other central banks, including the Riksbank and the Norges Bank, will also hold their last monetary policy decisions for 2025 this week. 

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Nonfarm payrolls due this week

The week also includes the release of a number of delayed economic data releases in the U.S., including October retail sales and the key November jobs report.

Fed chair Jerome Powell made it clear in the press conference that accompanied the last FOMC meeting that future interest rate decisions will be data dependent, and this data will be closely watched.

In Europe, investors will also digest PMI activity data for December, as well as consumer inflation numbers for both the eurozone and the U.K..

Earlier in the session, Chinese industrial production and retail sales grew less than expected in October, while fixed asset investment– a key gauge of business spending– shrank at an outsized pace.

The prints raised more doubts over slowing growth in the world’s second-largest economy, and likely put more pressure on Beijing to dole out economic stimulus.

Concerns over a debt crisis in China’s property market also remained in play, especially after state-backed developer China Vanke failed to win debtholder approval to delay payments on an onshore bond maturing on December 15.

Sanofi drug fails Phase 3 trial 

In the corporate sector, the European earnings season has largely ended, Sanofi (EPA:SASY) will be in the spotlight after the French healthcare company said that its experimental drug tolebrutinib failed to meet its primary endpoint in a Phase 3 clinical trial for primary progressive multiple sclerosis.

Additionally, Hikma Pharmaceuticals (LON:HIK) announced that Riad Mishlawi has stepped down as Chief Executive Officer and from the company’s Board of Directors by mutual agreement.

Crude falls following weekly loss

Oil prices declined on Monday, continuing the decline following the previous week’s sharp losses as traders digested the prospect of disruptions to global supply from escalating U.S.-Venezuela tensions as well as a potential Russia-Ukraine peace deal.

Brent futures fell 1.3% to $60.34 a barrel, and U.S. West Texas Intermediate crude futures declined 1.4% to $56.45 a barrel.

Both benchmarks slid more than 4% last week, driven largely by fears that global crude supply is outstripping consumption growth.