Moody’s downgrades Optivo

Moody’s Investors Service said it downgraded to A3 from A2 the issuer rating of Optivo and the senior secured debt rating of Optivo Finance plc and changed the outlooks to stable from negative.

“The downgrade of Optivo’s ratings to A3 reflects the weakening in Optivo’s financial metrics, which Moody’s expects to remain more closely aligned with A3 peers. Optivo’s debt has grown to support its development program, while its interest cover metrics have declined. Weaker operating margins alongside continued debt growth to support development will continue to pressure interest covers and operating cash flows,” Moody’s said in a press release.

The stable outlook reflects the view that Optivo’s planned increase in borrowing and its consequent effect on debt and interest cover ratios is balanced by the organization’s large and resilient balance sheet.

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