SYDNEY - Credit ratings agency Standard & Poor's has cut its outlook on PMP, as the printing and catalogue distributor faces challenging market conditions.
S&P maintained its long-term debt rating on PMP at BB-plus, but downgraded the ratings outlook to negative, from stable.
"The outlook revision reflects our view of the increasingly challenging market conditions for the company and the Australian printing sector," S&P said yesterday.
Last month PMP reported a first half net loss of A$11.09 million ($13.91 million), compared with a profit of A$68.06 million in the previous corresponding period.
S&P said the first half result reflected intense competition in the print market and PMP's vulnerability to adverse economic conditions, and warned its rating may be at risk.
"Ongoing moderation in earnings, together with a bleak outlook for the print sector and potential weakening in PMP's market position, could challenge PMP's ability to maintain a financial profile supportive of the BB-plus rating," it said.
PMP shares closed down 5c to 45c yesterday.
- AAP
S&P downgrades outlook on PMP rating
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