Moody’s rates Stark Group loan B2

Moody's Investors Service said it confirmed LSF10 Wolverine Investments SCA's (Stark Group A/S) B2 corporate family rating, its B2-PD probability of default rating and its B2 rating on the group's €515 million senior secured fixed- and floating-rate notes maturing in 2024.

At the same time, a B2 rating was assigned to the proposed €300 million senior secured term loan B.

The outlook was changed to negative from rating under review.

The new term loan B will be used to fund Stark Group's announced acquisition of Saint Gobain Building Distribution Deutschland GmbH and repay some existing debt of Stark Group and Saint Gobain.

“Today's rating action reflects our view of the execution challenges linked to the integration and the expected performance improvements of the all-debt funded acquisition of SGBDD towards the levels of Stark Group,” Daniel Harlid, Moody's lead analyst for Stark Group, said in a news release.

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