Moody's cuts Roehm

Moody's Investors Service said it downgraded to B3 from B2 the corporate family rating and to B3-PD from B2-PD the probability of default of Roehm Holding GmbH and to B3 from B2 the instrument rating for the senior secured term loan B and senior secured revolving credit facility. The outlook remains negative.

Moody's updated its EBITDA expectation which is €265 million, equivalent to the annualized run-rate of Roehm's 2019Q4 adjusted EBITDA. This includes a €50 million contribution from restructuring benefits and about €6.5 million incremental EBITDA from Roehm's Smart Capex program. The resulting Moody's-adjusted gross leverage is 8.5x debt/EBITDA expected for 2020 and is one of the factors that lead to the downgrade of ratings to B3, the agency said.

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