Fitch assigns Rovensa B, loan B+

Fitch Ratings said it assigned Rovensa (Root Bidco Sarl) an expected long-term issuer default rating of B with a stable outlook and an expected senior secured term loan rating of B+/RR3.

The expected issuer rating is driven by Rovensa’s acquisition of European Crops Products 2 Sarl and planned new capital structure, Fitch said.

“The ratings are constrained by a highly leveraged capital structure, which is typical in private equity transactions, and the small scale of Rovensa. They also reflect the stability of Rovensa’s business profile due to a focus on specialty crop nutrition, crop protection, and biocontrol products as well the company’s positioning in higher-margin segments with favorable growth prospects,” Fitch said in a press release.

Besides the term loan, the company is securing a €115 million revolver.

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