Moody's: Ideal notes at Caa1

Moody's Investors Service said it assigned Ideal Standard International SA a corporate family rating of Caa1 and a probability of default rating of Caa1. The agency assigned a provisional Caa1 rating to the €250 million senior secured bond due 2018 to be issued by Ideal Standard and guaranteed by Ideal Standard Holding Sarl and its main subsidiaries.

The outlook is stable.

The ratings reflect the company's exposure to the home improvement and residential and commercial construction sector, which has not recovered from the recent downturn; its reliance on the successful execution by the management team of a long-term restructuring initiative to realize projected cash flows; the company's plan to over time rationalize and reposition its brands; and its exposure to the risk of increases in input costs, the agency said.

The ratings consider Ideal Standard's significant potential to enhance margins through cost reduction, its geographic diversification within Europe, its range of reasonably strong international brands and its strong liquidity position, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.