Moody's: Fresenius loan Ba1

Moody's Investors Service said it assigned a provisional (P)Ba1 rating to the new senior secured bank facilities of Fresenius SE & Co. KGaA.

The agency said the group's Ba1 corporate family rating, Baa3 senior secured rating and Ba1 senior unsecured rating remain on review for downgrade, due to Fresenius' ongoing bid to acquire Rhon Klinikum AG.

"Our assignment of a (P)Ba1 rating to FSE's new senior secured bank facilities of around €3.1 billion is based on our assumption that the group's bid to acquire Rhon will be accepted," said Alex Verbov, a Moody's vice president - senior analyst and lead analyst for Fresenius, in a news release.

"As such, the (P)Ba1 rating specifically reflects (i) Moody's expectation that, if the transaction is successful, we will downgrade FSE's corporate family rating by one notch to Ba2 as a result of increasing leverage, and (ii) that the bank debt ranks structurally and contractually ahead of FSE's outstanding unsecured bonds," said Verbov.

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