Moody’s lifts RENK

Moody's Investors Service said it upgraded the long-term corporate family rating of RENK GmbH to Ba3 from B1 and the probability of default rating to Ba3-PD from B1-PD. The agency also revised the outlook to positive from stable.

“The rating action reflects our expectation that the company, following its recent IPO, will have a relatively conservative and balanced financial policy going forward. This expectation is supported by its new dividend policy, which foresees a 40-50% payout from net income, and its plan to reduce net leverage to approximately 2x from 2.6x at the end of September 2023.

“Additionally, RENK has successfully refinanced its €520 million guaranteed senior secured notes with term loans. This move has kept the debt amount largely unchanged while increasing the revolving credit facility to €75 million, thereby enhancing liquidity,” Moody’s said in a press release.

The improved outlook reflects an expectation that RENK's credit metrics will keep improving over the next 12-18 months pushing Moody's adjusted gross leverage below 3x, the agency said.

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