Moody’s assigns Barentz Midco B2

Moody’s Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Barentz Midco BV.

Concurrently, Moody’s assigned a B2 rating to Barentz Bidco BV’s senior secured facilities, a term loan B and a revolving credit facility, which Barentz Midco guarantees.

“The B2 CFR of Barentz, which is weakly positioned, is primarily constrained by the company’s aggressive financial policies, as exemplified by a high starting pro forma gross leverage of roughly 6x for 12 months to September 2020, as adjusted and defined by Moody’s, as well as the existence of sizeable PIK notes outside of the restricted group, which the agency does not include in its leverage calculation, but considers qualitatively as a credit negative,” the agency said in a press release.

The outlook is stable. “The stable outlook reflects Moody’s expectations that Barentz will be willing and able to maintain its Moody’s adjusted leverage below 6x in the next 12-18 months,” Moody’s said.

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