Moody's rates Autodistribution notes B3

Moody's Investors Service said it assigned a provisional B2 corporate family rating to Parts Holdings (France) SAS, a holding company of the Autodistribution Group, and a provisional B3 rating to the proposed €240 million senior secured notes due 2019 to be issued by Autodis SA. The outlook is stable.

The note proceeds will be used to repay existing loan facilities, shareholder loans and as the case may be to partly finance the potential acquisition of ACR Holdings SAS.

The agency said the provisional B2 corporate family rating reflects Autodistribution's exposure to the economy of France, the company's modest size compared to some of its suppliers, intense competition in the sector leading to price pressure, the company's high leverage pro forma for the transaction, the sensitivity of the automotive aftermarket to macroeconomic conditions and oil prices and risks relating to potential merger and acquisition activity.

Positively, the ratings are supported by an established presence in the fragmented aftermarket, the company's relative size compared to other independent players, a fragmented customer base consisting of local distributors and garages and Autodistribution's track record showing improving operational performance in the most recent years, Moody's said.

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