Moody’s gives B1 to HP Pelzer notes

Moody's Investors Service said it affirmed the B1 corporate family rating and the B1-PD probability of default rating assigned to HP Pelzer Holding GmbH.

In addition, the agency assigned a provisional B1 rating to the proposed €350 million senior secured notes.

Moody's said it will likely withdraw the B1 rating for the existing €280 million senior secured notes once HP Pelzer repays them using the proceeds from this transaction.

The outlook remains stable.

"The affirmation reflects HP Pelzer's forward looking metrics which are expected to remain in-line with our guidance for the current rating following this transaction," Scott Phillips, Moody's vice president, senior analyst and lead analyst for HP Pelzer, said in a news release.

"Despite a small increase in gross debt, and the payment of a shareholder distribution, sustained earnings growth will underpin a gradual deleveraging."

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