Moody's assigns Xella notes B3

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Xella International Holdings Sarl, the parent entity of Xella International SA.

Concurrently, the agency withdrew Xella International SA's Ba3 corporate family rating and Ba3-PD probability of default rating.

Moody's also assigned a definitive B3 rating to the €200 million PIK toggle notes due 2018 issued by Xella HoldCo Finance SA and affirmed the existing Ba3 rating on €300 million senior secured notes due 2018 issued by Xefin Lux SCA.

The outlooks are stable.

The action follows the completion of the PIK notes offering and an amendment of the senior secured bank facilities and concludes the review, which was initiated on Oct. 7, 2013.

Moody's said it moved the corporate family rating from Xella International SA to Xella International Holdings Sarl to reflect its view that all group debt including the new PIK toggle notes should be considered in consolidated metrics.

The definitive B3 rating on the €200 million PIK toggle notes reflects the fact that they are structurally subordinated to all other debt within the group and are effectively ring-fenced from the senior secured notes restricted group.

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