Moody's gives Baa2 to Inchcape notes

Moody's Investors Service said it assigned a Baa2 long-term issuer rating to Inchcape plc and a Baa2 instrument rating to the proposed benchmark-sized backed senior unsecured notes, the proceeds of which will be used to repay bridge financing put in place for the Derco acquisition.

The outlook is stable.

Moody’s said Inchcape's credit quality benefits from its conservative capital allocation framework. Moody's estimates that the company's gross leverage, measured on the basis of Moody's-adjusted gross debt to EBITDA (in each case including the IFRS 16 impact of leases) will be around 1.5x at the end of 2023.

“This positions the company strongly in the leverage range the rating agency considers acceptable for its Baa2 rating,” the agency said in a news release.

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