Moody's lowers DomusVi

Moody's Investors Service said it downgraded the corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD of HomeVi SaS (DomusVi).

Concurrently, Moody's downgraded to Caa1 from B3 the instrument ratings of (1) the senior secured term loan B of €1.17 billion due in October 2026, (2) the senior secured term loan B2 of €800 million due in October 2026, and (3) the senior secured revolving credit facility of €190 million due in April 2026.

The outlook remains stable.

“Today’s rating action reflects the deterioration in DomusVi's credit metrics due to cost inflation and the time lag in passing through price increases. It also reflects tightening liquidity because cash flow generation will not be sufficient to cover debt amortizing in 2023 and 2024, although liquidity is still adequate at this stage,” Moody’s said in a news release.

Moody's understands that the company has already secured €40 million of committed bank financing to cover part of debt amortization in 2023.

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