Moody's upgrades Amer Sports

Moody's Investors Service said it upgraded to B2 from B3 Amer Sports Holding 1 Oy's €1.7 billion backed senior secured term loan B due March 2026 and €315 million backed senior secured revolving credit facility due October 2025, both borrowed by Amer Sports' subsidiary, Amer Sports Holding Oy.

The agency also raised Amer Sports’ corporate family rating to B2 from B3 and its probability of default rating to B2-PD from B3-PD. The agency concurrently changed the outlook to stable from positive.

"The upgrade to B2 reflects the company's sustained earnings improvement and its positive track record after the pandemic, which led to a marked reduction in financial leverage in 2022 despite the weakening macroeconomic environment, high-cost inflation and supply chain disruptions," said Giuliana Cirrincione, a Moody's lead analyst for Amer Sports, in a press release.

The stable outlook reflects the forecast the company will be able to sustain credit metrics commensurate for the B2 rating over the next 18 months on the back of stable earnings in 2023 and continued but slower EBITDA growth, thereafter, leading to a Moody's adjusted leverage below 5.5x by 2024, the agency said.

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