Moody’s rates Octal, notes B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Octal Holding SAOC.

The agency also assigned B1 instrument ratings to the proposed $300 million senior unsecured notes due 2023 issued by Octal Finance BV.

The outlook is stable.

Moody’s said the ratings reflect the company’s strong market position in monolayer polyethylene terephthalate sheets, exposure to relatively stable end markets, proprietary production process allowing for a low-cost base and some degree of customer retention, and prudent financial policies including no planned dividend outflows, limited capital investment needs and limited appetite for acquisitions.

The agency said the ratings are constrained by the company's concentrated exposure to commodity products, limited track record in terms of margin resiliency, concentration of production principally in one facility, and significant customer concentration.

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