Moody's rates Novem notes Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating and probability of default rating of Ba3-PD to Novem Group GmbH.

Moody's also said it assigned a Ba3 rating to the new €375 million senior secured notes due 2024 to be issued by Novem.

The outlook is stable.

Novem's Ba3 corporate family rating reflects the company's leading position in the decorative interior trims market for premium cars with long-standing relationships to premium automotive original equipment manufacturers, history of revenue growth in excess of global light vehicle production and solid financial metrics compared to expectations for a Ba3 rating, Moody's said.

The company has a conservative financial policy and good liquidity, the agency said.

The ratings are constrained by Novem's small size, with revenues of about €0.7 billion through 2019 and its exposure to the cyclicality of the automotive industry environment, Moody's said.

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