Moody’s ups Holdelis, Novalis

Moody's Investors Service said it upgraded the corporate family rating of Holdelis SAS (Elis) to Ba2 from B1.

Concurrently, the upgraded the probability of default rating to Ba2-PD from B1-PD and the rating of the €450 million senior secured notes issued by Novalis SAS to Ba2 from Ba3.

All ratings have stable outlook.

The actions follow the completion of Holdelis’ initial public offering and concludes the review that was initiated on Jan. 30.

On Feb. 10, Holdelis announced it successfully completed its IPO. The offering – which priced at €13 per share – gave the company a market capitalization of around €1.5 billion at the time of listing.

Upon the receipts of €700 million of gross proceeds raised through issuance of new shares, Holdelis reimbursed about €620 million of debt and thereby significantly decreased its leverage to below 3 times reported net debt/ EBITDA, down from an estimated level of 4.7 times as of end 2014.

The company's reduced debt levels will lead to reduced interest expenses and Moody's expects Holdelis to produce a free cash flow of around €60 million in 2015.

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