Moody's revises Rovensa view to stable

Moody's Investors Service said it changed the outlook on Root Bidco Sarl (Rovensa) to stable from negative.

“Today's action reflects Moody's expectation of improving credit metrics over the next 12 to 18 months based on organic growth prospects, the company's continuous focus towards higher margin products, and a steady realization of synergies from the Oro Agri acquisition translating into EBITDA growth. In particular, Moody's anticipates Rovensa's gross leverage, as adjusted and defined by Moody's, to decline towards 6x by fiscal year ending June 2022 (fiscal 2022) from 6.6x in fiscal 2021 (on a full-year pro forma basis for the Oro Agri acquisition), and to well below 6x in fiscal 2023,” the agency said in a press release.

Concurrently, Moody's affirmed Rovensa's B2 corporate family rating and B2-PD probability of default rating, as well as the B2 ratings of Rovensa's senior secured term loan and senior secured revolving credit facility.

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