Moody's upgrades Safilo

Moody's Investors Service said it upgraded Safilo SpA's corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD. The outlook on all ratings is positive.

On May 15, the company successfully issued a €150 million unsecured bond with a five-year tenor to become convertible into new Safilo shares, subject to the approval of a reserved capital increase by an extraordinary general meeting to be held no later than Sept. 30. In addition, the group announced a new €150 million unsecured revolving line with a four-year maturity. This new line will become effective following the capital increase. The proceeds of the bond and revolver will be used to fully refinance the company's maturities on long-term facilities.

"Our upgrade of Safilo's ratings reflects both the company's diminished refinancing risk following its recent bond issue and its stable operating performance. The group was able to maintain a fairly stable EBITDA in 2013 and the first quarter of 2014. In addition, Safilo's financial metrics are solidly positioned for the B1 rating," Paolo Leschiutta, a Moody's vice president and senior credit officer, said in an agency news release.

© 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.