Moody's upgrades Atalian

Moody's Investors Service said it upgraded the ratings of La Financiere Atalian SAS, including the corporate family rating to B3 from Caa1, the probability of default rating to B3-PD from Caa1-PD and the ratings on the guaranteed senior unsecured notes due 2024 and 2025 to Caa1 from Caa2. The agency changed Atalian’s outlook to stable from positive.

"The upgrade of the CFR to B3 is driven by our expectation that Atalian's revenues and earnings will continue to improve over the next 12-18 months and result in credit metrics more commensurate with a B3 CFR, notably Moody's-adjusted debt/EBITDA of 7x or below, and continued positive underlying free cash flow," said Eric Kang, a Moody's vice president, senior analyst and lead analyst for Atalian, in a press release.

"In our view, there is still uncertainty as to the level of margins once the benefits of partial unemployment schemes subside, but we expect margins to remain well above the level of 2019, reflecting the benefits of cost-saving initiatives implemented before the coronavirus outbreak," Kang added.

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