Moody's upgrades Rodenstock facilities

Moody's Investors Service said it upgraded the ratings on Rodenstock GmbH's and Rodenstock Holding GmbH's €415 million senior secured facilities to B2 from B3.

The facilities include a €395 million term loan B due in 2026 and €20 million revolving credit facility due in 2025.

The outlook is stable.

The B3 corporate family rating and B3-PD probability of default rating of Rodenstock Holding are unchanged.

The upgrades follow the completion of the refinancing and the improved security package for the newly issued term loan and revolving credit facility contained in the final senior facility agreement compared to the initial draft, Moody's explained.

In addition to pledges over shares, bank accounts and intercompany receivables, the senior secured facilities also are secured against assets of the German operating companies, including certain real estate assets and intellectual property, the agency noted.

As such, the new instruments will benefit from an enhanced security package relative to other group liabilities, Moody's said.

The ratings reflect the group's established market position as the world's fourth largest ophthalmic lenses producer, the agency said.

The ratings also consider its high leverage following the refinancing and an expectation of a gradual de-leveraging over the next 18 months, Moody's said.

The amount of the new term loan has been reduced to €395 million from the proposed €425 million with the proceeds entirely used to refinance the previous outstanding €395 million loan, the agency said.

The refinancing has no impact on gross leverage, Moody's said.

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