Moody's gives Titan Holdings B3

Moody's Investors Service said it gave a B3 corporate family rating and B3-PD probability of default rating to Titan Holdings II BV. Concurrently, Moody's assigned B2 instrument ratings to the new €275 million revolving credit facility due 2027 and the €1.175 billion senior secured first-lien term loan B due 2028 being issued by Kouti BV, a wholly-owned subsidiary of Titan.

The B3 CFR reflects Titan’s leading market position in a stable European business and consistent performance through the pandemic as a key part of the supply chain, its good diversification across geographies, customers and end markets, its flexible cost base and pass-through contract structure, adequate liquidity and experienced management team, Moody’s said.

Counterbalancing these strengths, the rating also considers the material leverage of over 7.5x with limited reduction potential through top line growth given Titan's mature market, its moderate free cash flow due to significant interest costs and capital expenditures and working capital seasonality, the agency said.

The B revolver and term loan are one notch above the CFR reflecting their relative ranking in the capital structure based on Moody's loss-given-default (LGD) model, Moody’s said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.