Moody's rates Ovako notes B3, view positive

Moody's Investors Service said it affirmed Ovako Group AB's corporate family rating and probability of default rating at B3 and B2-PD, respectively.

The agency also said it assigned a B3 rating on the new €300 million senior secured notes due 2022, which subsidiary Ovako AB will issue.

The proceeds of the new notes should be used to repay in full the existing €300 million senior secured notes due 2019, whose rating has been affirmed at B3.

Once fully repaid, the rating on these notes will be withdrawn, Moody's noted.

Moody's also said it changed the outlook on all ratings to positive from stable.

The ratings reflect the company's balanced assessment of the company main credits strengths and weaknesses, the agency said.

Among the credit supportive considerations, Moody's acknowledged the company's leading regional market position in the European engineering steel market, focus on niche specialty products and adequate liquidity, Moody's said.

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