Moody’s upgrades Iglo Foods, loans, notes

Moody's Investors Service said it upgraded Iglo Foods Finco Ltd.’s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD, the ratings on the senior secured term loans and revolving credit facility at Iglo Foods Midco Ltd. to B1 from B2 and the ratings on the senior secured notes at Iglo Foods BondCo plc to B1 from B2.

The outlooks are stable.

Moody’ said the actions were driven by the reduction in Iglo Foods' leverage following Nomad Holdings Ltd.’s acquisition of the company. In addition to seeking to waive the change-of-control covenant as well as reprice margins on the term loans, the company intends to make about €490 million of loan repayment resulting in a pro-forma Moody's-adjusted debt/EBITDA ratio of 5 times compared to 6.9 times as of FY2014.

The ratings also reflect the challenging retail environment in the company's core markets and Moody's expectations that those conditions will persist throughout 2015, hampering material deleveraging in the near-term, the agency said.

© 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.