Moody’s lifts Froneri

Moody's Investors Service said it upgraded Froneri International Ltd.'s corporate family rating to Ba3 from B1, its probability of default rating to Ba3-PD from B1-PD and the instrument rating on the company's backed senior secured revolving facility due 2026 to Ba3 from B1. Concurrently, the agency raised the instrument ratings for the backed senior secured first-lien term loan B due 2027 borrowed by Froneri Lux FinCo Sarl and the backed senior secured first lien term loan B due 2027 borrowed by Froneri US, Inc. to Ba3 from B1.

“The upgrade of Froneri's CFR to Ba3 from B1 follows the company's strong operating performance during the first six months of 2023, driven by Froneri's premiumization strategy, significant pricing actions and resilient volumes, as well as efficiency gains resulting from the company's investments over the last two years. Moody's estimates that leverage (measured as Moody’s-adjusted debt/EBITDA) has reduced to approximately 5.1x as of the end of June 2023 compared to 6x at year-end 2022,” the agency said in a press release.

The agency said it expects Froneri’s leverage to decline sustainably below 5x for the rest of 2023 and 2024.

The outlook is stable.

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