Moody’s ups Global Blue PDR, view positive

Moody's Investors Service said it changed the outlook on the ratings of Global Blue Finance Sarl, the indirect holding company of Global Blue Acquisition BV, to positive from stable.

In addition, the agency upgraded the probability of default rating to B1-PD from B2-PD.

Concurrently, Moody’s affirmed Global Blue's B1 corporate family rating and the B1 senior secured instrument ratings issued at Global Blue Acquisition, a fully owned and guaranteed subsidiary of Global Blue.

The outlook on Global Blue Acquisition was changed to positive from stable.

"Our decision to change Global Blue's outlook to positive reflects the company's solid earnings growth and reduction in leverage which translate into a strong positioning in the rating category," Guillaume Leglise, Moody's analyst for Global Blue, said in a news release.

"The positive outlook also factors in Moody's expectations of continued robust free cash flow generation going forward supported by profitability growth."

The upgrade of the probability of default rating to B1-PD, in line with the B1 corporate family rating, reflects Moody's use of an average family recovery level of 50% reflecting an all-bank debt structure with loose financial covenants, the agency explained.

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