Moody's assigns Nobel Bidco B1

Moody's Investors Service said it assigned a first-time B1 corporate family rating and a B1-PD probability of default rating to Nobel Bidco BV, the new parent company of Philips' domestic appliances business. Concurrently, Moody's gave a B1 rating to the company's planned €850 million senior secured term loan B and €250 million senior secured revolving credit facility, both due in 2028.

"The B1 rating reflects the company's large scale, leading market positions supported by its strong brand, its well diversified footprint and solid cash flow generation," said Giuliana Cirrincione, Moody's lead analyst for Nobel, in a press release.

"However, the rating also factors in the high initial leverage, and the execution risk on the separation from Philips as well as repositioning the business in China, "added Cirrincione.

Proceeds will be used to finance the acquisition of Philips' domestic appliances division by Hillhouse Capital, as well as to cover transaction fees.

The outlook is stable.

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