Moody's affirms FS Funding

Moody's Investors Service said it affirmed the B2 corporate family rating of FS Funding A/S, the holding company of ISS A/S.

Moody's said it concurrently affirmed the Caa1 rating on the €850 million senior subordinated floating-rate notes due 2016 and on the €454 million senior subordinated notes due 2016 issued by the same entity.

The outlook on all remains stable.

The ratings affirmation follows the company's announcement of its intention to refinance a portion of the group's existing debt and to raise new funding for future acquisitions, the agency said.

Moody's noted that the affirmation of the B2 corporate family rating reflects (i) the company's global presence and leadership in the facility services industry, further strengthened by the most recent acquisitions, (ii) the broad range of services the company is able to offer, which increases the opportunity of cost synergies, cross selling and bundling, (iii) low customer concentration, which combined with the company's global penetration reduces the impact of market volatility on operating margins, (iv) the company's stable margins and high cash conversion ratios, thanks to relatively low capex requirements and good control over working capital.

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