Moody’s changes Ecotone view

Moody's Investors Service said it changed to negative from stable the outlook on the ratings of Ecotone HoldCo III SAS. The company was formerly known as Wessanen.

Moody's affirmed the company's B3 corporate family rating, the B3-PD probability of default rating and the B3 backed senior secured instrument ratings on the €490 million first-lien term loan and the €75 million first-lien revolving credit facility, both due in 2026 and borrowed by Ecotone.

“The negative outlook reflects the company's weaker operating performance in 2022 and Moody's expectations that any recovery in profitability over the next 12-18 months will be weaker than previously anticipated and challenged by the general high inflation and low consumer sentiment that are exerting pressure on the company's sale volumes and profitability, limiting therefore any significant improvement in credit metrics that are likely to remain weak over the next 12 to 18 months,” Valentino Balletta, a Moody's lead analyst, said in a news release.

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