Fitch gives Nova Alexandre III notes BB-

Fitch Ratings said it assigned Nova Alexandre III SAS’ planned €425 million of senior secured five-year notes an expected BB- rating with an RR3 recovery rating. Nova Alexandre is the debt-issuing entity for Nova Orsay. The agency also gave the issuer a first-time expected long-term issuer default rating of B+. The outlook is stable.

The B+ rating reflects Nova Orsay's considerably improved capital structure and financial flexibility after a €150 million equity injection in March, which Fitch said it assumes will be used for debt repayment, as well as the planned refinancing of maturing notes.

“The stable outlook reflects our belief that the group is likely to maintain its good business profile and continue to generate solid free cash flow (FCF) in the short-to-medium term, driven by gradually rising underlying operating earnings and lower working-capital volatility,” Fitch said in a press release.

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