Moody’s: Armacell view positive

Moody's Investors Service said it changed Armacell Holdco Luxembourg Sarl’s outlook to positive from stable and affirmed its B3 corporate family rating, its B3-PD probability of default rating and the B2 ratings assigned to the €622 million backed senior secured term loan due 2023 and the €100 million backed senior secured revolving credit facility due 2022 raised by Armacell Bidco Luxembourg Sarl. The outlook on Armacell Bidco remains stable.

The agency said the outlook change recognizes Armacell's robust performance during the first quarter of 2017 and good growth expectations for the next 12 to 18 months.

Despite sound profitability improvements, Armacell's Moody's-adjusted leverage of 6.6x debt/EBITDA (or around 7.1x excluding the currency gain) at the end of March remains high, the agency said. According to Moody’s, this mainly reflects the group's debt-financed acquisition of the insulation business of Nomaco for almost €55 million in January, which also confirms Moody's assessment of a fairly aggressive financial policy of the group.

© 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.