Moody's changes Flamingo view to stable

Moody's Investors Service said it changed Flamingo Group International Ltd.’s outlook to stable from negative and affirmed all its ratings on the top entity of the borrowing group. This includes B2 instrument ratings on the €280 million backed senior secured term loan B and €30 million backed senior secured revolving credit facility.

The stabilization of the outlook reflects the company's resilient and improving performance despite the pandemic. Flamingo's sales in 2020 were up by 12% and company adjusted EBITDA by 8% compared to 2019 driven by strong demand in the home delivery channel and cost saving initiatives,” Moody’s said in a press release.

In this year’s first quarter, sales climbed by 36% and EBITDA by 40%, although prior-year comparables include a period most adversely affected by the initial lockdown.

Flamingo's Moody's-adjusted leverage, measured as adjusted debt to EBITDA, retreated to around 4x as of April 2021 from 4.5x in December 2020 and 5.2x in 2019, a level the agency said it considers strong for the B2 rating corporate family rating.

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