Moody's gives B3 to Rossini notes

Moody's said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Rossini Sarl, a new entity formed for the purpose of acquiring an indirect majority ownership in Recordati SpA, one of the largest Italian pharmaceutical companies.

Concurrently, Moody’s said it assigned a B3 rating to the proposed €1.28 billion senior secured notes due 2025 to be issued by Rossini. The outlook is stable.

“The B2 rating assigned to Rossini reflects the fact that Recordati's standalone strong business and financial profiles are offset by Rossini's additional indebtedness and the fact that Rossini's capacity to serve its debt will rely on dividends paid by Recordati which will be owned at only 51.8% (or 53.3% net of treasury shares),” said Paolo Leschiutta, senior vice president at Moody's and lead analyst for Rossini, in a news release.

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