Moody’s rates Keter loan B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Keter Group.

Moody's also said it assigned a provisional B2 rating to the senior secured credit facilities that Keter plans to issue. The facilities will consist of a €690 million equivalent term loan B and €100 million revolving credit facility, which together will rank pari passu.

The outlook is stable.

The ratings reflect Keter's strength as a No. 3 player in the market for resin plastic consumer goods, the agency said.

High margins, credible growth plan and expectations for greater stability under a new ownership structure add weight to Keter's business risk profile, Moody’s said.

These positive factors are balanced by its relatively high initial leverage, the agency said.

The company has a significant presence in the global consumer plastic industry with strong diversification across a number of wealthy consumer end markets, the agency said.

The ratings are constrained by the competitiveness of the consumer durables sector, which faces significant pricing pressure from a small number of relatively large customers, Moody’s said.

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