Moody’s rates Financiere Pax loans B3

Moody’s Ratings said it gave B3 ratings to Financiere Pax SAS’ expected €1.1 billion senior secured loan maturing in December 2029 and to the new expected €175 million senior secured revolving credit facility maturing in June 2029.

Concurrently, the agency affirmed the B3 ratings for Pax Midco Spain's (Areas) B3 corporate family rating, B3-PD probability of default rating and the B3 ratings on the senior secured bank credit facilities issued by Financiere Pax.

The company plans to use the term loan to repay part of the €150 million senior secured acquisition facility maturing in June 2026, part of the €1.05 billion senior secured term loan maturing in June 2026 and the €108 million French state-guaranteed loan maturing in October 2026.

"Today's ratings actions reflect our expectation that Areas will continue to improve its profitability, supported by higher traffic across segments and by continued costs control," said Sarah Nicolini, a Moody's vice president, senior analyst and lead analyst for Areas, in a press release.

"However, the ratings also consider that, despite the expected profitability improvement and the strong business momentum, the company's free cash flow generation will remain negative in the next 12-18 months, owing to higher capital expenditure, and the interest coverage will remain weak," Nicolini added.

The outlook remains stable.

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