Fitch gives Alpha AB loan B+

Fitch Ratings said it assigned Alpha AB Bidco BV an expected long-term issuer default rating of B with a stable outlook, and an expected senior secured rating of B+/RR3/60% to its €830 million seven-year senior secured covenant-light term loan B.

The rating on Alpha AB, which is Ammeraal Beltech and Megadyne SpA combined, reflects an expectation of stable revenue and profits for the combined group over the rating horizon, the agency said.

However, the rating also reflects the high leverage at closing of the proposed transaction, Fitch said.

At closing of the transaction, Fitch said it expects the FFO-adjusted gross leverage to be 8.5x, a clear constraining factor for the rating.

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