Moody's rates Grandir, loans B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and a B2-PD probability of default rating to the Education Group SAS (Grandir), the holding company within the restricted group that will own Grandir SAS, a leading French-based international provider of child care and early education.

Concurrently, Moody's gave a B2 rating to the €350 million first-lien senior secured term loan B due September 2028 and the €75 million first-lien senior secured revolving credit facility due March 2028, both borrowed by the Education Group.

Infravia Capital Partners agreed to acquire Grandir for around €800 million. Shortly after, on July 27, Grandir announced that it entered exclusive negotiations to buy Sodexo's child care business, Liveli, for around €200 million. InfraVia will contribute equity along with significant reinvestment from Grandir's founder and Sodexo.

"The B2 rating reflects Grandir's resilient busines model and good industry demand dynamics supported by a favorable regulatory environment and tax regime mainly in France, its largest market," said Víctor García Capdevila, a Moody's vice president, senior analyst and lead analyst for Grandir, in a press release.

"However, the rating also factors in Grandir's high leverage, the execution risks associated with its rapid and ambitious organic and inorganic growth strategy and its limited free cash flow generation," added García.

The outlook is stable.

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