Moody’s trims Obol France 2

Moody’s Investors Service said it downgraded the corporate family rating of Obol France 2 SAS, which is the holding company for OGF, to B3 from B2, and its probability of default rating to B3-PD from B2-PD.

Moody’s also downgraded to B3 from B2 the ratings on the €960 million senior secured term loan B due March 2023 and the €60 million senior secured revolver due December 2022, both borrowed by Obol France 3 SAS, which is fully owned by Obol France 2 SAS.

“We expect OGF’s earnings to remain under pressure through the fiscal year ending (FYE) March 2020 because of increased competition in the French funeral market, low mortality rates and lower than planned cost-savings achieved. As a result, we expect that OGF’s leverage (measured as Moody’s-adjusted gross debt to EBITDA) will remain above 6.5x over the next two years, a level which is not commensurate with the prior B2 rating,” said Giuliana Cirrincione, Moody’s lead analyst for OGF, in a news release.

The outlook on Obol 2 and Obol 3 is stable.

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