Moody's: Boparan, notes Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating and Ba3 probability of default rating to Boparan Holdings Ltd., along with a provisional Ba3 rating to its proposed £695 million senior unsecured notes due 2018.

The outlook is stable.

The proceeds will be used to finance the acquisition of Northern Foods plc and to repay all of Boparan and Northern Foods' existing debt, Moody's said. The notes will be guaranteed by the combined group's operating subsidiaries.

The ratings reflect the combined company's large size and its diverse product portfolio of branded and private label products, the agency said.

But Moody's noted the group's exposure to the United Kingdom and Ireland, as well as private label products, which may be vulnerable to margin compression.

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