Moody’s ups Dry Mix Solutions, notes to B1

Moody's Investors Service said it upgraded Dry Mix Solutions Investissements SAS’ corporate family rating to B1 from B2 and probability of default rating to Ba3-PD from B1-PD.

Dry Mix is the intermediate holding company of Parex Group.

Concurrently, the agency upgraded the rating on the group's seven-year €550 million senior secured floating rate notes due June 2021 to B1 (LGD5) from B2 (LGD5).

"The upgrade recognises the group's very strong financial results for the first three quarters of 2015 which were particularly driven by sustained buoyant demand in its key emerging markets, most notably China. Beyond a considerable 16.5% year-over-year increase in group revenue, Parex's profitability improved markedly with EBITDA margins as adjusted by Moody's climbing to around 17% in the 12 months through September 2015 from 15% in fiscal year 2014," Goetz Grossmann, Moody's lead analyst for Parex, said in a news release.

"Moreover, the upgrade takes into account Parex's improved leverage which has decreased to around 4.1x debt/EBITDA in the 12 months ended September 2015 from 5.1x in 2014 and which positions Parex solidly in the B1 rating category."

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