Moody’s rates Synthos Eurobonds Ba2

Moody's Investors Service said it assigned a provisional Ba2 rating to €400 million debut Eurobonds to be issued by Synthos Finance AB (publ), a wholly owned special purpose finance subsidiary of Synthos SA incorporated in Sweden.

The outlook is stable.

Moody’s said the provisional Ba2 rating, in line with Synthos SA's Ba2 corporate family rating reflects (a) the company's leading market position in several niche synthetic rubbers and styrene products markets in Europe; (b) longstanding relationship with key customers, such as the largest tire manufactures, including Compagnie Générale des Etablissements Michelin (Baa1 stable), Pirellli (not rated) and Goodyear Tire & Rubber Co. (Ba3 positive); (c) the consistent track record of strong operational and financial performance with solid profitability through the cycle (three-year average adjusted EBITDA margin of more than 15%), which is underpinned by the company's low-cost position owing to its access to competitively priced raw materials; as well as (d) its low leverage (three-year average adjusted debt/EBITDA of 1 times); and (e) solid liquidity position.

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