Fitch rates Amphora B, loan BB-

Fitch Ratings said it assigned Amphora Finance Ltd. an expected long-term foreign-currency issuer default rating of B(EXP).

The outlook is stable.

The agency also assigned Amphora's proposed £301 million loan (A$550 million) seven-year senior secured term loan B an expected rating of BB-(EXP) with recovery rating of RR2.

Amphora is a holding company that wholly owns Accolade Wines. Accolade is the fifth-largest wine company globally by volume and a leading player in the U.K. and Australia markets.

Fitch said it views Accolade's business profile as strong compared with other wine producer peers globally, however its credit profile is constrained by the group's high leverage, defined as FFO adjusted net leverage, which the agency expects to remain above 5 times until at least the financial year ending June 30, 2020 (FY20).

The agency also expects the company to take longer than its target of four years to achieve a company-defined net debt/EBITDA of 3 times or lower.

The rating also takes into account the company's strong market positions in core geographies, high-quality asset base and diversified sourcing arrangements, which underpin the strong business profile, Fitch explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.