Moody's rates Financiere Colisée loans B2

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

Moody's also said it assigned a B2 rating to the €770 million worth of senior secured term loan B due 2026 and to the €130 million worth of senior secured revolving credit facility due 2025 raised by Financiere Colisée and certain subsidiaries.

The outlook is stable.

The proceeds from the loans, together with an €230 million equity contribution and about €100 million cash available, will be used to repay the existing financial debt of the company, finance the acquisition of Armonea Group NV and repay Armonea's existing financial debt, Moody's said.

The ratings are supported by the company's strong market position as the fourth largest company in the French nursing homes market and the second largest in the Belgian nursing home market on a pro forma basis, the agency said.

The ratings also consider its solid track record of organic and external growth, driven by increasing occupancy rates, price increases and acquisitions, Moody's said.

The ratings are constrained by the company's small scale in total revenues and its high gross leverage of nearly 7x in 2019, the agency said.

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