Moody's :Refresco notes at B1

Moody's Investors Service said it assigned B1 corporate family and probability of default ratings to Refresco Group BV and a provisional B1 rating to the proposed issuance of €660 million of senior secured notes.

The outlook is stable.

The ratings reflect Refresco's position as a leading producer of private-label soft drinks and contract manufacturer for national and international A-brands in Europe, its enhanced geographic and product diversity and adequate liquidity profile, the agency said.

The ratings consider Refresco's moderate scale in absolute terms, its high customer concentration, its narrow margins compared with that of its peers and exposure to fluctuations in raw material prices, albeit mitigated by the company's practice of purchasing raw materials to cover its sales position when a contract is locked, the agency added.

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