Moody's ups Stabilus CFR to B2

Moody's Investors Service said it upgraded the corporate family rating of Stabilus SA (formerly known as Servus HoldCo Sarl) to B2 from B3.

At the same time, the agency affirmed the probability of default rating at B2-PD and the instrument rating assigned to the senior secured notes issued by Servus Luxembourg Holding SCA on June 7, 2013 at B2 and changed the outlook on all ratings to positive from stable.

Moody's said the action was prompted by the reorganization of the group structure alongside the initial public offering of the shares of Stabilus and the early redemption of around €60 million of the senior secured notes. As a result of this reorganization, which consisted of a number of complex internal transactions, Stabilus' total debt position (as adjusted by Moody's) was significantly reduced to €330 million (pro-forma 31 March 2014) compared to €664 million prior to IPO through the elimination of subordinated profit participation loans, thereby reducing Moody's adjusted leverage from around 10x to 4.4x.

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