Moody’s rates Marcolin notes B2, view stable

Moody's Investors Service said it affirmed Marcolin SpA’s B2 corporate family rating and B2-PD probability of default rating and changed the outlook to stable from negative.

Concurrently, the agency assigned a B2 senior secured rating to the proposed new €250 million floating-rate notes maturing in 2023.

The B2 rating on the outstanding €200 million senior secured notes due 2019 will be withdrawn upon completion of their early redemption.

"The stabilization of the outlook on Marcolin's ratings reflects the expected improvement in the company's cash flow generation and financial leverage during 2016, as well as the strategic agreement with the French luxury group LVMH Moet Hennessy Louis Vuitton SE (LVMH, unrated), that we consider a credit positive," Lorenzo Re, Moody's vice president, senior analyst and lead analyst for Marcolin, said in a news release.

"The proposed refinancing, once completed, will also strengthen Marcolin's liquidity position and reduce the company's cost of funding."

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