Moody’s rates Amira CFR B2, notes B3

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Amira Nature Foods Ltd.

Concurrently, the agency assigned a provisional B3 rating and loss given default assessment of LGD4 to the $225 million senior secured second-lien notes due 2020 to be issued jointly by Amira Nature Food Ltd. Mauritius and Amira I Grand Foods Inc., which are both wholly owned subsidiaries of Amira.

The outlooks are stable.

"The B2 CFR reflects our expectation that the global demand for Amira's core rice products will remain strong, which has supported the company's track record of revenue and profitability growth in recent years. The rating incorporates our expectation that adjusted gross leverage will increase somewhat with the current refinancing as some additional debt will be used to fund the planned significant investment in working capital and the opening of a new factory," Ernesto Bisagno, Moody's vice president, senior analyst and lead analyst for Amira, said in a news release.

"In spite of a moderately leveraged capital structure, the rating is constrained by our view that the company's supplier base remains exposed to weather conditions and the potential for price fluctuations that could have a notable impact on profitability."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.