Moody’s views Rodenstock negatively

Moody’s Ratings said it changed its outlook for Rodenstock’s parent Iris HoldCo GmbH to negative from stable and affirmed its B3 ratings on the company and its €810 million backed senior secured term-loan maturing in 2028 and the €125 million backed senior secured revolving credit facility due in 2027, borrowed by Rodenstock Group GmbH.

"The outlook change to negative reflects Rodenstock's very high leverage and weak interest coverage metrics for the B3 rating category, owing to the weaker-than-expected performance in 2023, especially due to a larger impact of the GrandVision phase-out," said Michel Bove, a Moody's AVP and lead analyst for Rodenstock, in a press release.

The agency said it now forecasts Rodenstock's revenue will increase by mid-single digits in the next 12-18 months.

"While the affirmation of Rodenstock's ratings reflects our expectation of progressive improvements in its earnings, leverage and free cash flow generation over the next two years, there is no headroom for deviation in terms of operating performance relative to our expectations," Bove added.

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