Moody's rates Alison loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Alison Midco Sarl, an entity fully owned by Triton funds, and the holding company holding the shares of the air preheater business of Alstom which was recently spun off.

Concurrently, the agency assigned a provisional B2 rating to €310 million of first-lien senior secured term loans, a provisional B2 rating to a €40 million revolving credit facility and a provisional Caa2 rating to €120 million of second-lien senior secured loans borrowed by Alison Bidco Sarl, Alison German Holding GmbH and Alison US LLC.

The outlooks are positive.

Moody's said it considers Alison's liquidity profile as adequate. The group will have €27 million of cash on balance sheet at closing of the transaction and access to an undrawn revolver of €40 million and to a €160 million LCs facility. The agency expects Alison to be free cash flow generative at least in the next two years, which will support a build in cash on balance sheet and a reduction in gross debt through the legally binding cash sweep.

Debt amortization under the group's lending facilities will be manageable, the agency said.

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