Moody’s gives B2 to Averys CFR, facilities

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Financiere Efel SAS, the ultimate holding company of Averys SAS.

Concurrently, the agency assigned a B2 rating to the company's €240 million senior secured facilities agreement, split into a €230 million term loan B with seven-year tenor and a €10 million revolving credit facility with six-year tenor.

The outlook is stable.

Moody’s said the B2 corporate family rating is supported by Averys': (a) Market leading position in Europe allowing the group to capture market growth; (b) solid manufacturing and distribution footprint enabling customer proximity and limited freight costs which are key elements to ensure competitiveness in the fragmented and competitive racking market where products are largely undifferentiated; (c) good profitability with a Moody's adjusted EBITA margin around 10%; and (d) an asset-light business model with 80% of the cost base considered variable and low capex requirements helping to maintain the stability of the margins and to support very good cash flow generation.

The term loan B and revolving credit facility are rated in line with the corporate family rating. The instruments are senior secured and guaranteed by group companies representing at least 80% of EBITDA, the agency explained.

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