Moody's rates Ammeraal loans B1, Caa1

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to AI Alabama Midco BV, the holding company of Ammeraal Beltech Holding BV; a provisional B1 (LGD3) rating to its proposed seven-year €205 million first-lien term loan and six-year €40 million revolving credit facility and a provisional Caa1 (LGD5) rating to its proposed eight-year €60 million second-lien term loan. The outlook is stable.

The agency said the B2 corporate family rating reflects Ammeraal's good and defensive, albeit not dominant, niche market position in the relatively fragmented light-weight belting market, the good future demand fundamentals for light-weight belting product and Ammeraal's strategy of targeting strategic customers and identifying cross-selling opportunities.

A ratings constraint is Ammeraal's high leverage following the proposed €305 million refinancing. The agency expects the company’s ratio of gross adjusted debt to EBITDA to remain around 5.5x in the medium term.

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