Moody's trims Maxeda

Moody's Investors Service said it downgraded the corporate family rating of Maxeda DIY Holding BV to B3 from B2. The agency also trimmed the company's probability of default rating to B3-PD from B2-PD and the instrument rating on the €470 million backed senior secured notes due 2026 to B3 from B2. The agency revised the outlook to negative from stable.

“Today's downgrade reflects Moody's expectations that, given the overall weak macroeconomic outlook for Europe and persistent high inflation, Maxeda's earnings, margins and free cash flow (FCF) are likely to deteriorate in the company's fiscal 2023 (year ending Jan. 31, 2024),” the agency said in a press release.

The weaker outlook reflects “the risk that the underlying earnings trajectory of the business remains at best flat and its FCF generation remains weak which will bring the sustainability of its current capital structure into jeopardy,” Moody’s said.

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