Fitch raises Freshworld ratings

Fitch Ratings said it raised Freshworld Holding III GmbH's long-term issuer default rating to B+ from B and the rating of the first-lien senior secured term loan B, issued by Freshworld Holding IV GmbH, to BB- from B+. Under the agency’s recovery criteria, the recovery percentage improves to 67% from 54%, still inside the RR3 range.

“The upgrades reflect the group's successful implementation of its transformation program which significantly improved profitability and cash flow generation. The ratings are underpinned on Freshworld's strong market position in mobile sanitary services (cabins and containers), the resilience of its earnings and cash flows as highlighted at the height of the coronavirus pandemic, and existing organic and inorganic growth potential,” Fitch said in a press release.

The agency said it forecasts Freshworld’s leverage staying below the 6x downgrade threshold, even including the €95 million add-on this month, on a funds from operations leverage basis.

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