Moody’s lowers Heubach

Moody's Investors Service said it downgraded Luxembourg Investment Co. 437 Sarl's (Heubach Group) corporate family rating and probability of default rating to B3 from B2 and to B3-PD from B2-PD, respectively. Concurrently Moody's downgraded Heubach's backed senior secured debt instruments, borrowed by Luxembourg Investment Co. 438 Sarl to B3 from B2, which comprise a CHF 560 million dollar equivalent term loan B and a $125 million revolving credit facility.

Moody’s also revised Heubach’s outlook to negative from stable. The outlook of Luxembourg Investment Co. 438 is negative.

In explaining the lower rating, Moody’s cited Heubach’s estimated leverage of 9x at Dec. 31, 2022, which it sees increasing over 2023, negative adjusted free cash flow in 2022, which also is expected to continue in 2023 and a weaker liquidity position.

On the plus side, Heubach does not have any substantial maturities until 2027, the agency said.

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