Moody's rates Labco notes B2

Moody's Investors Service said it assigned provisional B2 corporate family and probability-of-default ratings to Labco SAS and a provisional B3 rating (LGD 4, 58%) to the company's proposed €500 million senior secured notes.

The outlook is stable.

The B2 corporate family rating reflects the company's position as one of Europe's largest players in the highly fragmented European clinical laboratory services market, its good profitability and business model, relatively favorable growth prospects in terms of volume and resilience to economic downturns, according to the agency.

Ratings also reflect the company's limited size, regulatory risks and a complex organizational structure in France, the agency said.

The company's debt-to-EBITDA ratio is expected to slightly decline to around 5.5x over the next two years, from around 6.0x, Moody's said.

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