Moody’s rates 2018 IMCD bond Baa3

Moody’s Investors Service said it gave a Baa3 rating to the guaranteed senior unsecured bond sold by IMCD NV in 2018.

“The Baa3 rating of the guaranteed senior unsecured bond, in line with IMCD's Baa3 long-term issuer rating, reflects the instrument's status as senior unsecured debt in an investment grade type of structure. Sizeable deferred and contingent considerations at operating subsidiaries, representing roughly a third of the entire adjusted debt, would likely rank ahead of bondholders in a restructuring scenario. However, given the relatively long distance to default as indicated by the investment-grade rating, Moody's does not notch the bonds raised at a holding entity level down from the issuer rating,” the agency said in a press release.

The outlook is stable.

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