Moody's rates Kinove, notes B2, loan Ba2

Moody's Investors Service said it assigned a provisional B2 corporate family rating to Kinove German Bondco GmbH, along with a provisional B2 (LGD 4, 57.48%) rating to the proposed €600 million senior secured guaranteed notes to be issued by the holding company and a provisional Ba2 (LGD 1, 6.41%) rating to the $250 million revolving credit facility.

The outlook is stable.

The ratings reflect what the agency viewed as the key business risks to the company, particularly the modest scale of the company's revenues and EBITDA in absolute terms and its dependence on a single niche business in a relatively narrow reference market compared with the wider chemicals industry, Moody's said.

The ratings also reflect the company's historically high volatility, especially in terms of EBITDA, as a consequence of the high exposure of a large portion of its revenues to the automotive market, the agency said.

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