Moody’s rates Emeria notes B2

Moody’s Investors Service said it assigned B2 ratings to Emeria’s (formerly Foncia Management SAS) targeted issuance of €400 million of guaranteed senior secured notes due 2028.

The agency also affirmed the B2 ratings on the €688 million senior secured term loan, the €1.275 billion senior secured term loan, the €400 million of guaranteed senior secured notes, all due in 2028 and the €437.5 million senior secured first-lien revolving credit facility due 2027.

Moody’s also affirmed the B2 ratings of Emeria’s parent Flamingo Lux II SCA and the Caa1 rating on its €250 million of senior unsecured notes due 2029.

The agency changed the outlook on both issuers to negative from stable.

“The negative outlook reflects that the rating will remain weakly positioned through 2024 with leverage still above the guidance for the B2 rating category on the back of weaker than expected operating performance in 2022; we estimate that earnings contribution on an annualized basis from 2022 acquisitions (including FirstPort) will result in leverage reducing towards 8x during 2023,” Moody’s said in a press release.

Emeria will use the proceeds to repay €240 million currently drawn under the revolver and to build an additional liquidity cushion of around €155 million.

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