Moody's snips Altadia

Moody's Investors Service said it downgraded Aquiles Spain Bidco, SA's (Altadia) corporate family rating and probability of default rating to B3 and B3-PD from B2 and B2-PD, respectively. Concurrently, Moody's lowered Altadia's ratings for the €1.2 billion senior secured term loan B and the €175 million senior secured revolving credit facility to B3 from B2. The agency also changed the outlook to stable from negative.

“Today's rating action reflects Moody's expectation that the company is unable to improve its credit metrics to levels commensurate for a higher rating over the next 12-18 months and Altadia's highly leveraged capital structure, with Moody's-adjusted gross leverage of above 8x for the last 12 months ended June 2023,” the agency said in a press release.

Volumes for the last 12 months ended June 2023 are 16% below the levels observed in 2021, and Moody's said it doesn’t foresee a recovery to the levels of 2021 before 2025.

“While Altadia's performance in the first half of 2023 appeared less severe compared to some other single B rated chemical companies, Moody's expects the company to generate materially lower EBITDA in 2023 and 2024 compared to the time when the initial rating was assigned resulting in a higher-for-longer leverage ratio,” the agency said.

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