Moody's assigns B3 to Nova Alexandre III

Moody's Ratings said it assigned a B3 long-term corporate family rating and B3-PD probability of default rating to Nova Alexandre III SAS (Fives), the new financing entity consolidating the operations of Fives SAS and ultimate parent of Novafives SAS. The outlook is positive.

Concurrently, the agency said it withdrew the existing Caa1 CFR and the Caa1-PD PDR at the previous financing entity Novafives. The existing Caa2 instrument ratings of the €600 million senior secured notes as well as the positive outlook on Novafives will be withdrawn once the contemplated refinancing has been completed.

“The assignment of a CFR at B3 at the new financing entity Nova Alexandre III SAS, one notch above the Caa1 CFR at the previous financing entity Novafives SAS, with positive outlook reflects the proposed refinancing of the current capital structure as well as Fives' continued improved operating performance in 2023.

“Furthermore, Moody's Ratings' expects that Fives' strong operating performance with high order backlog with an improved margin profile and good project execution will continue in the next 12-18 months, which increases the likelihood that its Moody's-adjusted credit metrics will continue to improve towards the agency's expectations for a B2 rating, such as gross leverage sustainably below 5.5x with positive FCF in 2024. This expectation is reflected in the positive outlook,” the agency said in a press release.

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