Moody's changes Keter outlook to stable

Moody's Investors Service said it changed Keter Group BV’s outlook to stable from positive and affirmed the B3 corporate family rating and B3-PD probability of default rating. Concurrently, the agency affirmed the B3 senior secured term loans and senior secured revolving credit facility ratings.

“The stabilization of the outlook reflects Moody's expectation that Keter's reduction in leverage over the next 12-18 months will be slower than initially expected, reducing the likelihood of an upgrade. This reflects a challenging economic environment as well as the expectation that consumer confidence will continue to be negatively affected by the general high inflation.

“The outlook change reflects expectations of a weaker free cash flow generation capacity going forward as well as Moody's expectation that higher interest costs will have a negative impact on the already weak interest coverage metrics and the company's liquidity profile,” the agency said in a press release.

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