Moody's may downgrade Novasaur

Moody's Investors Service said it placed the Ba2 corporate family rating of Novasaur SAS, the holding company for Saur SAS, and the B1 €265 million senior subordinated notes issued by Novasaur subsidiary FG4 SA on review for downgrade following the announcement by Novasaur's ultimate shareholder, PAI partners, that it granted exclusivity to a consortium comprised of Caisse des Depots et Consignations (47%), Seche Environnement (33%) and AXA IM (20%), to buy the share capital of Novasaur at an equity value of €1.72 billion.

The review reflects Moody's concerns that the potential transaction may result in a change in the group's capital structure if the new owners decide to further leverage up the business to fund part of the €1.72 billion purchase price.

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