Moody’s gives Dedalus, loans B

Moody’s Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Dedalus Holding SpA.

Moody’s also assigned B3 ratings to the planned €680 million term loan B and the €80 million revolving credit facility both issued by Dedalus Finance GmbH.

The B3 rating positively reflects the leading market position with a highly stable customer base in the healthcare segment and a high share of recurring revenues, the ongoing market push by regulation and shift towards technology, the company’s consistently high margins and free cash flow generation potential assuming the absence of shareholder distributions, which should support expected deleveraging going forward, Moody’s said.

On the negative side, Dedalus will have a high starting leverage of 7.1x pro forma 2019 after it acquires Aceso, which means there are integration risks, Moody’s said. The company also faces a saturated and competitive marketplace with the limited opportunity for organic growth, the agency said.

“The positive outlook reflects our expectation that the company will maintain its high share of recurring revenue with stable margins and that there will be no elevated debt-funded acquisitions or shareholder distribution as the company deleverages,” Moody’s said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.