Moody’s rates House of HR, facilities B1

Moody's Investors Service said it assigned a B1 corporate family rating to Belgium-based staffing company House of His Royal Majesty the Customer II NV (House of HR).

The outlook is stable.

Moody’s said the action reflects: (a) The company's strong track record of organic growth, high industry margins and cash generation; (b) leverage of 4.1 times on a pro forma Moody's adjusted basis at closing, which is expected to reduce below 4 times in the next 12-18 months; (c) the company's solid position within its core SME customer base in regions and industries with tight labor markets; and (d) the company's short history as an enlarged group with significant recent acquisitions.

Concurrently Moody's assigned a B1-PD probability of default rating to House of HR and B1 ratings to the €600 million senior secured term loan B and the €80 million senior secured revolving credit facility, issued by House of Finance NV, a wholly owned indirect subsidiary.

The senior debt facilities were issued in connection with the acquisition of Redmore Group BV (unrated) by House of HR, to refinance existing debt, to buy out minority interests and non-operational managers, and to finance transaction costs and working capital.

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