Moody's upgrades SUSE

Moody's Investors Service said it upgraded the corporate family rating and the probability of default rating of SUSE SA to B1 from B3 and B1-PD from B3-PD, respectively.

Concurrently, Moody's boosted to B1 from B2 the instrument ratings on the €300 million guaranteed senior secured term loan and the $81 million guaranteed senior secured revolving credit facility borrowed by Marcel Bidco GmbH and upgraded to B1 from B2 the instrument rating on the $360 million guaranteed senior secured term loan B1 issued by Marcel BidCo LLC. Moody's also raised to B1 from B2 the instrument ratings on the $68 million guaranteed senior secured term loan borrowed by Marcel Lux Debtco Sarl.

Moody’s changed the outlook for SUSE, Marcel Bidco GmbH, Marcel BidCo LLC and Marcel Lux Debtco to stable from ratings under review, concluding the review for upgrade started on April 30.

“The upgrade of SUSE's ratings reflects the improved capital structure following the debt repayment of $502 million with proceeds from the IPO leading to a Moody's adjusted debt/EBITDA of 5.2x expected in 2021PF with the expectation that the company will reduce leverage towards 4.5x in 2022,” the agency said in a press release.

The new outlook reflects the expectation leverage will fall below 5x (Moody's adjusted) in the next 12-18 months, a level that is commensurate with a B1 rating, Moody’s said.

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