Moody’s cuts Sani/Ikos bond

Moody’s Investors Service said it completed its review for downgrade of Sani/Ikos Group SCA and lowered the rating on the €300 million backed senior secured bond it guarantees to Caa2 from Caa1 and the company’s probability of default rating to Caa1-PD from B3-PD. The agency, however, affirmed the B3 corporate family rating and revised the outlook to negative from rating under review. The review started on Dec. 12.

“The one-notch downgrade of the PDR and the backed senior secured instrument rating reflects the increased level of subordination derived from the larger amount of mortgage debt raised by the company," said Elise Savoye CFA, a Moody's vice president, senior analyst and lead analyst for Sani/Ikos, in a press release.

“The negative outlook reflects that the rating is weakly positioned especially in light of the increased leverage of Sani/Ikos in terms of debt/EBITDA, which we expect to remain in the low double digits on the back of significant debt-funded growth and higher tolerance for leverage,” Savoye said.

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