Moody's moves Minimax view to positive

Moody's Investors Service said it changed the outlook to positive from stable and affirmed the B1 corporate family rating of Minimax Viking GmbH. Concurrently, Moody's affirmed the B1 instrument ratings on the group's senior secured bank credit facilities and affirmed the probability of default rating of Minimax at B1-PD.

“The outlook change to positive recognizes Minimax's solid performance during 2020 and year-to-date April 2021 and Moody's expectation that the company will continue to improve its credit metrics and maintain a solid liquidity profile in the next 12-18 months,” the agency said in a press release.

In 2020, Minimax's revenue declined by only 1.2% year-on-year, adjusted for FX effect, but improved its profitability despite the pandemic, especially its Asian business. As a result, the Minimax improved its company-adjusted EBITDA to €239 million, or by 3.4% year-on-year adjusted for FX effect, in 2020, Moody’s noted.

“For the next two years Moody's forecasts annual revenue growth in the low-single-digits and profitability to remain at least at the current level (Moody's-adjusted EBITA margin of 10.6% in 2020), supported by an expected economic recovery in 2021 and 2022. As a result, Moody's projects progressive growth in Minimax's EBITDA and consistently positive FCF, enabling the group to de-lever towards 4.5x debt/EBITDA and to maintain its RCF/net debt at above 15% (16.1% as of LTM Apr-21),” the agency said.

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