Moody's assigns International SOS Ba3

Moody's Investors Service said it gave a Ba3 corporate family rating and a Ba3-PD probability of default rating to AEA International Holdings (Luxembourg) Sarl, which is the intermediate holding company for International SOS.

Moody's assigned Ba3 instrument ratings to the planned $700 million backed senior secured first-lien term loan to be issued by AEA International Holdings (Luxembourg) and to the proposed backed senior secured first-lien revolving credit facility of up to $100 million to be borrowed by subsidiary company AEA International Holdings Pte. Ltd.

“The Ba3 CFR reflects: (1) the company's strong and differentiated market position as the only global integrated supplier of assistance and medical services; (2) good revenue visibility supported by subscriptions, medium term contracts, high retention rates and stable associated supplies demand; (3) strong historic track record and growth prospects, driven by increasing focus on employers' duty of care, employee safety and wellbeing and business continuity; (4) a conservative financial policy with moderately low leverage of 4.3x (Moody's-adjusted),” the agency said in a press release.

The proceeds will be used to repay $619 million of debt, acquire an associate company, pay transaction costs and boost balance sheet cash.

The outlook is stable.

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