Moody’s rates HEMA B3, notes B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to HEMA BV.

Concurrently, the agency assigned a provisional B2 rating to the proposed €610 million senior secured floating-rate notes due 2022 and to be issued by HEMA Bondco I BV and a provisional Caa2 rating to the proposed €150 million senior unsecured notes due 2023 to be issued by HEMA Bondco II BV.

The outlook is stable.

Moody’s said the B3 corporate family rating is supported by HEMA’s: (a) Established market position and brand awareness in the Netherlands; (b) good growth prospects supported by store remodeling in the Netherlands, international store expansion, and a redesigned e-commerce platform; (c) good liquidity post refinancing supported by positive free cash flow generation; and (d) differentiated and diversified product offering compared to other retailers.

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