Moody’s trims House of HR

Moody's Investors Service said it downgraded House of HR NV's corporate family rating to B2 from B1 and its probability of default ratings to B2-PD from B1-PD.

Concurrently, Moody's also downgraded the instrument ratings on the €370 million senior secured notes, the €550 million term loan B and the €100 million revolving credit facility issued by House of Finance NV to B2 from B1.

The outlook remains stable for both entities.

“House of HR's downgrade reflects our expectations that credit metrics will remain outside the B1 range for a prolonged period of time mainly due to the deteriorating prospects of the small and medium-sized enterprises segment, the company's core focus,” Florent Egonneau, assistant vice president and Moody's lead analyst for House of HR, said in a news release.

“Liquidity is largely sufficient to cope with the lower level of activity during lockdowns, thanks to the flexibility of its cost structure, the counter-cyclical working capital and asset-lite nature of the business.”

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