Fitch gives IPD B, notes B+

Fitch Ratings said it assigned IPD3 BV a first-time expected long-term issuer default rating of B with a negative outlook. It also assigned IPD's planned issue of €685 million of notes an expected senior unsecured B+ rating.

IPD’s rating reflects its high leverage triggered by the pandemic and the acquisition of Haynes group. “However, it also reflects our expectation of recovery and improvement in credit metrics post- 2020, a leading position in its product niches with a high share of subscription revenues underpinned by strong renewal rates, established and reputable brands as well as moderate barriers of entry,” Fitch said in a press release.

The outlook reflects uncertainties over the pace of recovery in end markets in 2021, limited visibility around the return of activities in the trade-show segment, and the damage of economic recession on IPD's customer base and renewal rates in the subscription business, the agency said.

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