Moody’s assigns B2 to Almaviva, notes

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Almaviva SpA.

Concurrently, the agency assigned a provisional B2 instrument rating to the new €250 million senior secured notes due 2022 borrowed by Almaviva.

The outlook is stable.

Moody’s said the B2 corporate family rating reflects the protracted decline in both revenue and profitability of its Italian customer relationship management operations which resulted in material restructuring costs during 2015-16.

It also reflects the significant concentration around the contract with its top client; foreign exchange exposure; limited scale and geographic diversification compare to global information technology and customer relationship management providers; and the competitive nature of those industries, which will likely limit material improvements in EBITDA margin.

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