Moody's downgrades Arvos

Moody's Investors Service said it downgraded the corporate family rating of Arvos Midco Sarl to Caa2 from Caa1 and the company's probability of default rating to Caa2-PD from Caa1-PD. Concurrently, the agency trimmed the ratings on Arvos BidCo Sarl’s guaranteed first-lien senior secured term loan B maturing in August 2023 and the guaranteed senior secured revolver due May 2023 to Caa2 from Caa1.

“Moody's downgrade of Arvos' CFR to Caa2 from Caa1 follows it weak year-to-date operating performance and Moody's expectation of very high financial leverage and negative free cash flow (FCF) generation in fiscal year ending March 2022 (fiscal 2022). The company is now expecting company-adjusted EBITDA and reported EBITDA of around €52 million and €37 million, respectively, compared to the management's target of €62 million and €61 million as of January 2021,” the agency said in a press release.

The outlook on both entities remains negative.

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