Moody's rates Akerys notes Ba3

Moody's Investors Service said it assigned Ba2 corporate family and probability-of-default ratings to Korreden SA, the holding company for developer Akerys. Moody's also assigned a provisional Ba3 (LGD5, 77%) rating to €300 million of senior floating-rate notes due 2014 to be issued by Akerys Holdings SA, a finance subsidiary of Korreden SA.

The outlook is stable.

Proceeds will be used for refinancing debt and to fund a €35 million dividend distribution.

The Ba2 corporate family rating reflects Akerys' position in the buy-to-let segment of the homebuilding market and its good geographic diversification, Moody's said.

Ratings also consider the supportive legal framework in France, the group's conservative risk-management guidelines and its integrated business model, which yields more stable cash flow than a pure homebuilder, the agency said.

The ratings remain constrained by the homebuilding industry's cyclical nature, low entry barriers, strong competition and exposure to interest rates, unemployment and consumer confidence, Moody's said. Ratings also consider the group's moderate leverage and its focus on one type of product.

Moody's said the stable outlook reflects an expectation of maintaining a net adjusted debt-to-EBITDA ratio below 3 times.

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