Moody's downgrades Biscuit

Moody’s Investors Service said it lowered to B3 from B2 Biscuit Holding SAS’ €493.8 million senior secured first-lien term loan B due 2027 and on the €85 million senior secured multicurrency revolving credit facility due 2026. Moody's also downgraded to B3 from B2 the senior secured rating on the €201.2 million senior secured first-lien term loan B borrowed by De Banketgroep Holding International BV.

The agency also downgraded Cookie Intermediate Holding II SAS' corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD. Cookie is the parent company of Biscuit. The outlook has been changed to negative from stable.

"The rating downgrade reflects our expectation that Biscuit's depressed profitability and cash flow generation in 2022 will lead to a prolonged deterioration in credit metrics and liquidity while soaring energy and gas costs and ongoing commodity price volatility reduce visibility and likelihood of a timely recovery," said Paolo Leschiutta, a Moody's senior vice president and lead analyst for Biscuit, in a press release.

"The rating action also reflects that the company's very high leverage and tight liquidity are creating an elevated risk of debt restructuring," Leschiutta added.

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