Moody's rates Zobele notes B2

Moody's Investors Service said it assigned a definitive B2 corporate family rating and B2-PD probability of default rating to Z Beta Sarl following the successful execution of the group's refinancing and review of the final credit documentation.

Moody's also said it assigned a definitive B2 instrument rating to the €180 million of senior secured guaranteed notes, which were issued by Zobele Holding Spa, a wholly owned subsidiary of Z Beta.

The outlook remains stable.

The ratings reflect the group's leading market positions in the development and manufacturing of air care and insecticides devices for the consumer industry, Moody' said, along with strong and long-standing customer relationships with blue chip companies.

The ratings also consider its exposure to the defensive consumer-goods end markets notwithstanding that the demand for air care and insecticides devices is more discretionary than other segments of the consumer-goods industry, the agency said.

The ratings remain constrained by the group's relatively low and declining operating margins both at the EBITDA level and in relation to the capital employed by the group, Moody's said.

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