Moody’s gives Oberthur loans B2

Moody's Investors Service said it affirmed the B2 corporate family rating and B2-PD probability of default rating of Oberthur Technologies Group SAS.

Concurrently, the agency affirmed the B1 rating of the $280 million senior secured term loan due 2019 raised by Oberthur Technologies of America Corp., the B1 rating of the €260 million senior secured term loan due 2019 and €88 million senior secured revolving credit facility raised by Oberthur Technologies SA and the Caa1 rating of the €190 million guaranteed senior global notes due 2020 issued by Oberthur Technologies Group.

The outlook is stable.

In addition, Moody's assigned a B2 rating to a new €2.1 billion refinancing and acquisition seven-year senior secured term loan due 2023 and a B2 rating to a new €300 million six-year senior secured revolving credit facility to be borrowed by Oberthur Technologies Group, Oberthur Technologies of America and Oberthur Technologies.

This new facility will refinance all existing rated debt and Moody's expects to withdraw the ratings on these existing instruments on closing (expected in December 2016).

"The rating affirmation reflects the anticipated improvement in business profile which will result from the proposed acquisition of Safran's Identity and Security business (Morpho), which mitigates the initial estimated pro-forma increase in adjusted leverage to 6.4x," Colin Vittery, Moody's vice president, senior analyst and lead analyst for Oberthur, said in a news release.

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