Moody's alters Rovensa view to negative

Moody's Investors Service said it changed the outlook on Root Bidco Sarl (Rovensa) to negative from stable. Concurrently, Moody's affirmed Rovensa's B2 corporate family rating, B2-PD probability of default rating and the B2 ratings for the senior secured bank credit facilities.

“The negative outlook reflects Rovensa's highly leveraged capital structure, with Moody's-adjusted gross leverage of above 8x (excluding funding and earnings contribution for its two latest acquisitions) for the last 12 months ended December 2022, and Moody's expectation for a delayed deleveraging trajectory compared to our previous estimates.

“The negative outlook balances the uncertain pace and degree of credit metrics recovery to levels commensurate for its B2 rating and the favorable demand fundamentals supported by Rovensa's focus on more sustainable agricultural solutions,” Moody’s said in a press release.

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