Moody's reviews Douglas for upgrade

Moody's Ratings said it placed Douglas Service GmbH’s ratings on review for upgrade, including the corporate family rating of B3 and the B2 instrument ratings on the backed senior secured bank credit facilities issued by Douglas Service, Groupe Douglas France SAS, Kirk Beauty Netherlands Holding BV, Groupe Nocibe SAS, Parfumerie Douglas International GmbH and the backed senior secured notes issued by Douglas Service. Moody's also placed the Caa2 rating on the backed senior secured PIK notes issued by Kirk Beauty SUN GmbH on review for upgrade. Previously, the outlook on all entities was stable.

The review for upgrade was prompted by Douglas’ Monday announcement that it filed for an initial public offering of Douglas AG on the Frankfurt Stock Exchange.

"Today's rating action reflects the material improvements in Douglas' credit metrics and liquidity profile that is likely to occur if the company achieves a public listing as announced," said Guillaume Leglise, a Moody's vice president, senior analyst and lead analyst for Douglas, in a press release.

"Should the IPO, along with the refinancing plan, be completed as planned, we expect Douglas' Moody's-adjusted gross debt/EBITDA to reduce to around 3.3x from 5x as of in December 2023 because proceeds from the IPO will be largely used to repay debt," Leglise added.

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