Moody’s gives Ba3 to Dometic notes

Moody's Investors Service said it assigned a provisional Ba3 rating to Dometic Group AB's €1.5 billion euro medium-term note program, a Ba3 rating to the its proposed €500 million notes issued under the program maturing 2023 and a probability of default rating of Ba3-PD.

The outlook is positive.

This is the first euro medium-term note program established by Dometic. Moody’s expects that proceeds from the €500 million notes issued under it will be used to refinance part of the outstanding €1,033,000,000 term loan facilities and drawn revolving credit facility of €45 million. Drawings of €600 million under the term loan facilities were made in conjunction with the acquisition of SeaStar Solutions in December 2017.

The bonds will thus extend Dometic's maturity profile somewhat as the existing term loans mature between 2020 and 2022, compared to the notes maturing in 2023, the agency explained.

Moody’s said the provisional Ba3 unsecured rating assigned to the note program and the notes is aligned with the company's Ba3 corporate family rating, reflecting that the notes will be unsecured and rank pari passu with Dometic's outstanding term loan facilities and all other unsecured and unsubordinated obligations, present and future.

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