Moody's alters Libra view to negative

Moody's Investors Service said it changed the outlook for Libra HoldCo Sarl (Lutech) and Libra GroupCo SpA to negative from stable and affirmed Libra HoldCo’s B2 long-term corporate family rating and B2-PD probability of default rating. Moody's also affirmed the B2 rating on the €338 million of backed senior secured notes borrowed by Libra GroupCo due 2027.

"Today's rating action reflects Moody's expectation that Lutech's adjusted leverage will remain at the weaker end of the B2 guidance around 6x in the next 12-18 months amid the current challenging economic environment where IT budget might be reduced or postponed. On the other hand, we see the recent acquisition of Atos Italia improving Lutech's business profile while being leverage neutral supported by a material equity contribution from Apax Partners," said Dirk Goedde, a Moody's vice president, senior analyst and lead analyst for Lutech, in a press release.

"In addition, given the size of the acquisition, we see integration risks that could lead to higher costs and thus reduce the deleveraging potential, albeit we acknowledge the group's track record of integration and synergies realization from previous bolt-ons," Goedde added.

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