Moody’s might lift Springer

Moody’s Investors Service said it placed on review for upgrade the B2 corporate family rating and B2-PD probability of default rating of Springer SBM One GmbH.

The agency said the B2 ratings on the senior secured facilities at both Springer Science+Business Media Deutschland and Springer Science+Business Media GmbH are unaffected by the review, as the existing debt instruments are expected to be refinanced with new facilities.

Moody’s said the action follows the announcement that the company filed a prospectus for the public offering of up to 145 million shares on the Frankfurt stock exchange.

"We are placing Springer Nature's ratings on review for upgrade because the company plans to repay some of its outstanding debt with proceeds from the IPO," Christian Azzi, Moody's assistant vice president and lead analyst for Springer Nature, said in a news release.

"The company's Moody's adjusted debt/EBITDA could decline to around 4x, pro-forma for the IPO and debt repayment, from 5.5x in 2017, which could result in ratings being upgraded up to two notches above the current B2.”

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