Moody’s assigns Spa, loans B2

Moody’s Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default to Spa Holdings 3 Oy, the holding company of Ahlstrom-Munksjo Oyj. Moody’s also assigned B2 ratings to the proposed €1 billion equivalent senior secured first-lien term loans and the proposed €325 million senior secured revolving credit facility issued by Spa.

“The rating is supported by A-M’s leading market positions in niche markets for high-performance fiber-based materials; its broad geographic diversification in terms of manufacturing footprint and end-market exposure; good fundamental growth perspectives from an increasing ESG awareness and a growing demand for sustainable/ recyclable products; and the company’s resilient and cash-generative business evidenced by its robust performance during the pandemic in 2020,” Moody’s said in a press release.

The outlook is stable, reflecting a forecast of gradual deleveraging over the next 12-18 months from improving business and profitability initiatives, the agency said.

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