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Moody's assigns Libra, notes B2
Moody's Investors Service said it assigned a corporate family rating of B2 and a probability of default rating of B2-PD to Libra HoldCo Sarl. Concurrently, Moody's assigned a B2 rating to the proposed €275 million of guaranteed senior secured fixed-rate notes due in 2027 borrowed by Libra GroupCo SpA.
Lutech's B2 rating is supported by an attractive Italian IT market with significant medium-term growth potential, a broad product portfolio for defined industry verticals and high technological expertise among other pluses, the agency said.
Conversely, Lutech’s limited geographic diversification with 90% of revenues generated in Italy, its overall limited scale, the competitive Italian IT market with limited barriers to entry and the company's entrenched position between large international players, among other drawbacks constrain the rating, Moody’s said.
The proceeds will be used to fund the acquisition of Lutech SpA by Libra HoldCo, refinance the group’s debt, fund the acquisition of a minority interest and pay the related transaction fees and expenses.
The outlook for both entities is stable. “Lutech is initially weakly positioned in the B2 rating category, but the rating factors in gradual leverage improvements over the next quarters,” Moody’s said in a press release.
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