New Profile: B2[N]/BB-[S]/BB-[S] (Moody’s downgraded on 29 Jan as flagged)

• Cerberus sale will lower gross debt but weaken leverage by reducing EBITDA generation
• S&P’s Gross Debt to Cash-adj EBITDA leverage seen above 5x in 2024 before decreasing gradually in 2025
• Equivalent ICR seen below 3x for next twelve months, recovering when leverage begins to improve.
• Recovery rating on senior notes remains at 4, indicating an expected average recovery of 30%-50% in case of default.
• The stable outlook reflects expectations that Intrum will continue implementing its revised strategy and stabilize its financial profile post-transaction.
• Refinancing risks for 2024 expected to decrease following the portfolio sale, but maturity concentrations in 2025 remain a concern.
• Intrum's liquidity is deemed adequate, with sources expected to exceed uses by 2.5x in 2024 and 1.6x in 2025.
• The Intrum EUR curve is notably cheaper today with their longest bond (2028s) EUR 7.29 cheaper at EUR 69.04 (over EUR 22.5 cheaper YTD).