Moody's gives B2 to Schur Flexibles loans

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Schur Flexibles GmbH.

Concurrently, Moody's said it assigned a B2 rating to the €475 million backed senior secured term loan B due 2028 and to the €100 million senior secured revolving credit facility due 2027, both to be borrowed by Schur.

The outlook is stable.

“The B2 rating reflects Schur's limited scale and geographic focus compared with its global competitors and rated peers in the context of a highly competitive industry with low growth prospects, its exposure to volatile raw material prices, the high opening leverage, and the risk of potential volume reduction over the medium term owing to sustainability targets of regulators and customers,” said Donatella Maso, a Moody's vice president - senior analyst, and lead analyst for Schur, in a news release.

“The rating also reflects the company's attractive market position as a vertically integrated regional player with a broad footprint and focus on SMEs, the presence in stable end-markets, its moderately diversified customer base, its track record of profitability improvement, our expectation for positive free cash flow generation from 2022 and an adequate liquidity profile.”

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