Fitch cuts CeramTec AcquiCo

Fitch Ratings said it downgraded the senior secured rating of CeramTec AcquiCo GmbH to B+/RR3 from BB-/RR2 following the announced add-on of up to €175 million to its term loan B.

“The downgrade of the senior secured rating reflects lower expected recoveries as a result of the upsized TLB to €1.196 billion from €1.021 billion at end-Q320. The increase has led to a decline in recoveries to RR3/64%, from RR2/75%. In its recovery analysis, we estimate a going-concern value for CeramTec at around €900 million (before deducting 10% for administrative claims), assuming a post-reorganization EBITDA of about €166 million with a multiple of 5.5x,” Fitch said in a press release.

The agency also affirmed CeramTec BondCo GmbH's long-term issuer default rating at B.

The outlook is negative.

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