Moody’s reviews Amer Sports for upgrade

Moody's Investors Service said it placed Amer Sports Holding 1 Oy's ratings on review for upgrade, including the B2 long-term corporate family rating and the B2-PD probability of default rating. Concurrently, the agency placed on review for upgrade the B2 backed senior secured ratings on the €1.7 billion senior secured term loan B due March 2026 and on the €315 million senior secured revolving credit facility due October 2025, both borrowed by Amer Sports' subsidiary, Amer Sports Holding Oy. The outlook was previously stable.

The decision to review follows the company's announcement on Monday that it had filed with the U.S. Securities and Exchange Commission the preliminary document for an initial public offering on the New York Stock Exchange. Moody's said the company is also looking to refinance its current bank debt.

"We have placed Amer Sports' B2 ratings on review for upgrade following the IPO filing mainly to reflect the increased financial flexibility through access to public equity markets and the improved liquidity, as well as the positive, albeit moderate, impact on adjusted leverage. We note that, prior to the IPO-related announcement, the company's ratings were strongly positioned in the B2 rating category," said Giuliana Cirrincione, Moody's lead analyst for Amer Sports, in a press release.

The agency said it aims to finish the review after the completion of the IPO and the refinancing, and an upgrade of all ratings between one and two notches is possible.

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