Moody’s downgrades A&O

Moody's Investors Service said it downgraded the corporate family rating of Alpha Group Sarl (A&O) to B3 from B2 and the probability of default rating to B3-PD from B2-PD.

Concurrently, Moody's downgraded the rating of A&O's senior secured term loan B and its senior secured revolving credit facility to B3 from B2.

The outlook remains stable.

“The downgrade reflects much weaker than expected credit metrics including the leverage ratio (Moody's adjusted) of 11x at the end of 2018, well above our expectation of 7.7x (for 2018) at the time of initial rating assignment in December 2017, as well as the interest coverage at around 1.4x (Moody's adjusted EBITA/interest) compared to 2x (for 2018) expected initially,” Vitali Morgovski, Moody's assistant vice president, analyst and lead analyst for A&O, said in a news release.

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