Moody’s downgrades Oxea loans

Moody’s Investors Service said it downgraded the ratings on the senior secured dollar- and euro-denominated term loans B issued by Oxea Corp. and Oxea Holding Drei GmbH to B3 from B2.

Concurrently, Moody’s assigned a B3 corporate family rating and B3-PD probability of default rating to Oxea Holding Vier GmbH. The outlook is stable.

With the CFR and PDR now assigned at the level of Oxea Holding Vier GmbH, Moody’s will withdraw the B2 CFR & B2-PD PDR and stable outlook at the level of Oxea Sarl.

“The downgrade of Oxea’s ratings reflects Moody’s expectations that the company’s credit metrics in 2020 will continue to be weaker than commensurate with the B2 ratings as a result of the economic repercussions of the Covid-19 pandemic and that absent a reduction in gross debt leverage will peak again at the weaker parts of the economic cycle,” Moody’s said in a press release.

Moody’s said it forecasts Oxea’s Moody’s adjusted EBITDA to be in the range of €115-€130 million, translating into high Moody’s adjusted leverage of 8.5x to 9.5x during 2020.

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