Moody's assigns Q-Park notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to the proposed €1.5 billion of senior secured notes due in 2025 and 2027 to be issued by Q-Park Holding I BV. The issuer is a subsidiary of Q-Park Holding BV. Proceeds of the notes will be used to refinance Q-Park's bank debt and repay a portion of an intercompany loan owed to Q-Park's parent company. The outlook is stable.

This is the first time Moody's has assigned ratings to Q-Park. The agency also assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating to Q-Park Holding.

Moody's said it considers Q-Park's liquidity profile adequate. Under the new financing structure, the company will not face any debt maturity until 2025 when a portion of the senior secured notes will be due. While Moody's expects Q-Park's revenues and EBITDA to continue to grow, the agency forecasts negative free cash flow generation over the next 12 to 18 months driven by capital expenditure rollout on the back of concession renewals and the payment of dividends to shareholders.

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