Moody's assigns HSE, notes B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and B2-PD probability of default rating to HSE Finance Sarl, the ultimate holding company owner of German home shopping retailer HSE. Concurrently, Moody's gave a B2 rating to HSE Finance’s planned €630 million guaranteed senior secured notes due 2026.

"HSE's B2 rating reflects the company's solid operating performance in 2020, reflecting its successful TV shopping platform, growing online channel and asset-light business model,” said Guillaume Leglise, a Moody's assistant vice president and lead analyst for HSE, in a press release.

"We believe restrictions imposed on trading for retailers with physical stores during the coronavirus pandemic supported HSE's performance in this period, and while we expect these tailwinds to soften in the next 12 to 18 months as lockdown restrictions are eased, we nevertheless expect HSE to continue to generate solid earnings and positive free cash flow," added Leglise.

The proceeds will be used to repay loans, pay a dividend and pay transaction fees and related costs.

The outlook is stable.

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