Moody's: Dematic notes at B3

Moody's Investors Service said it changed to B3 (LGD3, 48%) from provisional B3 the rating of Dematic SA's $300 million of senior secured guaranteed notes following the receipt of the final documentation of the notes.

The outlook is positive.

Dematic's B3 rating primarily reflects high financial leverage pro-forma of the group's refinancing and payout of dividends to its owner with a pro-forma gross debt-to-EBITDA ratio of 6.5 times as adjusted for the past 12 months period ending December 2010, the agency said.

The rating considers Dematic's small size and lack of product diversification, its history of poor operating performance and the relatively lenient terms of the notes, the agency added.

The rating also considers Dematic's strong market position in the fragmented logistics and materials handling solutions industry as well as its improving cost position and project execution since the business was acquired by Triton in 2006, the agency noted.

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