Moody's rates Senvion notes B2

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Rapid TopCo GmbH, the ultimate prospective parent holding company of the Senvion group, and a provisional B2 rating to the proposed €400 million senior secured notes issued by Rapid Holding GmbH and guaranteed, among others, by Rapid TopCo. The outlook is stable.

The agency said the B1 corporate family rating primarily reflects Senvion's structurally low profitability, limited product and end industry diversification, with a focus on the wind market in which continued regulatory support dictates growth, and geographical concentration risk.

However, the B1 corporate family rating balances these constraints against Senvion's modest leverage for the rating category (3.7x pro forma Moody's-adjusted gross debt/EBITDA expected for fiscal year ended March 31), size and market leadership positions, historically relatively stable and resilient profitability compared to some competitors and healthy order book, Moody’s said.

The provisional B2 rating assigned to the bonds, which is one notch below the corporate family rating, principally reflects the bonds’ subordinated position in the loss-given-default waterfall with regards to the super senior secured syndicated facility in a default scenario, the agency added.

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