Fitch gives Titan Holdings B

Fitch Ratings said it gave Titan Holdings II BV a first-time long-term expected issuer default rating of B. The outlook is stable. The agency also assigned an expected senior secured B+/RR3 rating to Kouti BV's upcoming term loan B. Kouti BV is Titan’s direct subsidiary.

“TH's leverage will be high following Crown Holdings, Inc.'s planned sale of 80% of TH and the issue of a €1.2 billion term loan TLB that will push total debt to €1.9 billion. Fitch expects TH's funds from operations (FFO) gross leverage to be 9x by end-2021, which is higher than most Fitch-rated peers. We expect gradual deleveraging in the medium term but forecast FFO gross leverage to remain relatively high at 7.2x by 2024,” the agency said in a press release.

The outlook mirrors expectations for a solid operating performance aided by a stable demand for metal food packaging and an expected improvement of EBITDA and free cash flow generation, Fitch said.

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