Moody’s changes Barentz view to negative

Moody’s Investors Service said it changed the outlook for Barentz Midco BV, Barentz Finco UK Ltd. and CI (Maroon) Holdings LLC to negative from stable and affirmed the B2 ratings.

The negative outlook reflects forecasted pro forma gross leverage of around 6.5x in 2023 and Barentz’s intention to borrow more money.

“Over the next 12-18 months, Moody's anticipates modest organic growth for most specialty chemicals distributors supported by a moderate recovery in demand. In particular, Moody's forecasts Barentz's EBITDA, as defined and adjusted by Moody's, to be around €230 million in 2024 leading to a Moody's-adjusted gross leverage of 6.5x to 6.8x pending on the exact amount of debt issuance. This positions the company weakly in its B2 rating with limited headroom for debt-funded acquisitions or operational underperformance.

“Our definition of gross debt includes sizeable put options granted to minority shareholders and non-recourse factoring,” Moody’s said in a press release.

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