Moody’s snips Rovensa

Moody’s Investors Service said it lowered the senior secured bank credit facilities of Rovensa (Root Bidco Sarl) to B3 from B2. The agency also downgraded Rovensa’s corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD.

“Since the last rating action in May 2023, Moody's lowered its expectation for fiscal 2024 and 2025. Given Rovensa's weaker growth pattern in the past year, due to agri-inputs market headwinds, the rating agency forecasts Moody's-adjusted EBITDA (including non-recurring items) to be around €150 million by the end of fiscal 2024 leading to Moody's-adjusted gross leverage of around 8x, positioning the company weakly in its B3 rating.

“In addition, the company's track record of FCF generation over the past several years has been weak, primarily due to investments in working capital and growth initiatives, and non-recurring costs, in particular related with the high number acquisitions,” the agency said in a press release.

The outlook is negative.

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