Moody’s rates Action facility B1

Moody's Investors Service said it assigned a B1 rating to the increased €2.28 billion senior secured term loan B tranche and €125 million revolving credit facility, maturing in 2025 and 2024 respectively, proposed under the existing credit facilities agreement of Peer Holding III BV (Action).

Concurrently, the agency affirmed the B1 corporate family rating and the B1-PD probability of default rating.

The outlook is stable.

The proceeds from the increase to the outstanding term loan will be used alongside about €90 million of cash to pay a dividend of about €760 million to Action's shareholders and related transaction costs.

Moody’s said Action's senior secured instrument ratings are in line with the corporate family rating, which reflects the company’s established scale in Benelux markets and growing presence and profitability in France and Germany, business model underpinning strong like-for-like sales development and earnings growth as well as high returns on investment associated with new store openings, strong underlying cash generation dynamics and good liquidity position, and the positive market share momentum being experienced by discount players.

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