Moody’s changes Flavum view to stable

Moody’s Investors Service said it revised the outlook for LSFX Flavum Holdco, SLU (Altadia, but formerly Esmalglass) to stable from negative.

“The stabilization of Altadia's outlook reflects the company's robust performance during 2020 for Esmalglass stand-alone but also of the combined entity pro forma the acquisition of the tile coatings business (Rocher) of Ferro Corp. (Ba3 negative). Moody's estimates that 2020 Moody's adjusted leverage pro forma the Rocher acquisition is around 5.2x and that the company will maintain leverage well in line with our expectations for the B2 rating, despite an expected weakening of the combined entity's gross margin and significant cost related to achieving the targeted synergies from the Rocher acquisition,” the agency said in a press release.

The stable rating also reflects Altadia’s generous liquidity cushion aided by its healthy free cash flow in 2020 and its continued strength, Moody’s said.

Concurrently, the agency affirmed the B2 corporate family, the B2-PD probability of default rating and the B2 ratings of the senior secured revolving credit facility and the senior secured term loans borrowed by LSFX Flavum Bidco, SAU.

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