Moody's lifts Springer Nature

Moody's Investors Service said it upgraded to Ba3 from B1 the long-term corporate family rating and to Ba3-PD from B1-PD the probability of default rating of Springer Nature One GmbH. Concurrently, the agency upgraded to Ba3 from B1 the ratings of the outstanding €1.542 billion senior secured term loan due August 2026, the outstanding $795 million secured term loan due August 2026, the €233.5 million senior secured multicurrency revolving credit facility due February 2026 and the €16.5 million senior secured multicurrency revolver due February 2024 of Springer Nature Deutschland GmbH.

"The rating upgrade reflects the strengthening of the company's key credit metrics underpinned by a good and resilient operating and financial performance, strong free cash flow generation, the company's demonstrated capacity and willingness to reduce debt and the smooth, successful and profitable transition towards Open Access (OA)," said Victor Garcia Capdevila, a Moody's vice president, senior analyst and lead analyst for Springer Nature, in a press release.

"The company's Moody's-adjusted gross leverage decreased to 3.7x in 2022 from 4.5x in 2021. Moody's expects leverage to continue to reduce over the next 12-18 months towards 3x driven by a combination of debt repayments, moderate organic growth and small bolt-on acquisitions," added Garcia Capdevila.

The outlook on both entities remains stable.

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