Moody’s assigns Apleona, loan B2

Moody’s Investors Service said it assigned a first-time B2 corporate family rating and a B2-PD probability of default rating to Blitz 20-486 GmbH. Concurrently, Moody’s assigned B2 ratings on the planned €740 million guaranteed senior secured term loan B1 maturing in 2028, the €145 million guaranteed multicurrency senior secured revolving credit facility and the €230 million multicurrency senior secured bonding facility, both maturing 2027, borrowed by Blitz 20-487 GmbH and guaranteed by its parent company Blitz 20-486, to finance the acquisition of Apleona Group, by PAI Partners SAS.

Apleona Group will be merged into Blitz 20-487 during the post-closing reorganization. The outlook on both entities is stable.

“The B2 CFR recognizes Apleona group’s resilient operating performance, backed by its strong market position and the implemented digitalization and efficiency measures, that will support the strengthening of the company’s credit metrics over the next 12 to 18 months,” said Ana Luz Silva, Moody’s lead analyst for Apleona, in a press release.

“However, the high financial leverage post-transaction appears aggressive in the context of a fragile economic recovery and will position the company’s rating weakly in the current category. This is only mitigated by the solid business profile supporting deleveraging prospects and our expectation that Moody’s adjusted leverage will be below 6x by the end of 2021,” added Ms. Silva.

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