Moody's changes Valeo view to negative

Moody's Investors Service said it changed the outlook to negative from stable on Platform Bidco Ltd. (Valeo), the parent company of Valeo Foods Group Ltd.

"The negative outlook reflects the company's weaker than expected operating performance during fiscal year-ending March 2023 owing to operational and supply chain challenges at some UK sites and Moody's expectation that a rapid recovery in profitability over the next 12-18 months will be challenged by the weak macroeconomic environment and consumer sentiment, especially in the UK, which might limit any significant improvement in credit metrics" said Valentino Balletta, a Moody's analyst and lead analyst for Valeo, in a press release.

"However, while the outlook change also reflects the expectation for a weaker free cash flow generation going forward, the B3 rating affirmation is supported by Valeo's adequate liquidity and its extended debt maturity profile, with no debt maturities until 2028, " Balletta added.

Concurrently, the agency affirmed the company's B3 corporate family rating, the B3-PD probability of default rating and the B2 ratings on the €1.1 billion equivalent senior secured first-lien term loan B and the €180 million senior secured multicurrency revolving credit facility, borrowed by Platform Bidco.

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