Fitch rates Rodenstock loans B

Fitch Ratings said it assigned Rodenstock GmbH's seven-year term loan B of €395 million and a 6.5-year €20 million revolving credit facility a senior secured loan rating of B/RR3.

The new facilities replace the previous senior secured facilities, which have been repaid in full.

Fitch also affirmed European Optical Manufacturing Sarl's long term issuer default rating at B- and withdrew the rating.

At the same time, it assigned Rodenstock Holding GmbH a long-term issuer default rating of B- with stable outlook. This reflects the alignment of the rated group of companies with the restricted group under the new financing documentation, Fitch said.

“Despite the lower final debt amount, the refinancing results in a high projected starting leverage in 2019 of 7.3x on a funds from operations (FFO) adjusted basis, versus 7.0x in 2018,” the agency said in a news release.

“This leverage will initially be outside our sensitivity guidance for a negative rating action.

“However, based on our projection of sustainably improved earnings we expect some deleveraging to 6.2x by 2022, which would firmly anchor Rodenstock's financing risk profile at B-.”

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