Moody's assigns Renta, notes B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Ren10 Holding AB (Renta). Concurrently, Moody's gave a B2 rating to the planned €350 million of guaranteed senior secured notes due 2027 issued by Renta.

The B2 rating reflects Renta’s leading market position, track record of building revenue and EBITDA, its moderate leverage and low level of customer and end market concentration, the agency said. However, the company’s small scale, exposure to cyclical markets, capital intensive nature of the industry and short operating history constrain the rating.

The proceeds will be used to finance the acquisition of Renta by the private equity firm IK Partners and for related transaction costs.

The outlook is stable.

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