Moody's upgrades Keter

Moody's Investors Service said it upgraded Keter Group BV's corporate family rating to B3 from Caa1 and its probability of default rating to B3-PD from Caa1-PD. Concurrently, Moody's raised to B3 from Caa1 the company's senior secured term loans due 2023 and senior secured revolving credit facility due 2022.

"The rating upgrade reflects the sustained sales and earnings growth momentum in 2020, resulting in a faster than anticipated reduction in Moody's adjusted gross leverage to around 7.4x, and the expectation that deleveraging will continue in 2021," says Giuliana Cirrincione, Moody's lead analyst for Keter, in a press release.

"The upgrade also reflects the company's improved liquidity, owing to both positive free cash flow generation in 2020 and the maturity extension to July 2023 of €102.14 million of its €110 million RCF, initially due in October 2022," added Cirrincione.

The outlook is stable.

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