Moody’s: TeamSystem notes B2

Moody’s Investors Service said it assigned a B2 rating to the new €450 million senior secured floating-rate notes due 2022 issued by Barolo BidCo SpA, part of TeamSystem Holding SpA.

The agency also said it withdrew the B2 rating on the €430 million senior secured notes due 2020 issued by TeamSystem.

The company’s B3 corporate family rating is unchanged, along with the B3-PD probability of default rating of Barolo MidCo SpA and the Caa2 rating on the €150 million senior notes issued by Barolo MidCo.

The outlook is stable.

The ratings reflect TeamSystem’s strong market position in the Italian ERP market, supported by high retention rates, high proportion of recurring revenues provided by its maintenance services and complex local accounting and legal framework, Moody’s said.

The ratings are constrained by TeamSystem’s high opening leverage with pro forma adjusted debt-to-EBITDA of 7.7x as of December 2015, the agency said.

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