Moody’s ups Pfleiderer notes, rates Grajewo B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Pfleiderer Grajewo SA, the new ultimate holding company of Germany-based Pfleiderer group, upon its successful capital increase through a public offering and reverse takeover of Pfleiderer GmbH completed on Jan. 19.

Concurrently, the agency upgraded the rating of the €322 million senior secured notes due 2019, issued by Pfleiderer GmbH to B2 (LGD4) from B3 (LGD4).

The outlook on all ratings is positive.

Moody's also withdrew the B2 corporate family rating and B2-PD probability of default rating assigned to Pfleiderer GmbH for reorganization reasons following the takeover by Pfleiderer Grajewo.

These actions conclude the review process for Pfleiderer GmbH, initiated on July 1, 2015, when the intention of a capital increase by Pfleiderer Grajewo and subsequent reverse takeover of Pfleiderer GmbH was announced.

"The B1 CFR assigned to Pfleiderer Grajewo SA and withdrawal of Pfleiderer GmbH's CFR reflect the change in Pfleiderer's corporate and legal structure in which Pfleiderer Grajewo SA has become the ultimate parent company and top entity of the restricted financing group," Goetz Grossmann, Moody's lead analyst for Pfleiderer, said in a news release.

"The assigned B1 CFR and upgrade to B2 of the senior secured notes acknowledge Pfleiderer's improved financial performance through 2015 and a materially strengthened position of Pfleiderer's bondholders. We further expect Pfleiderer to benefit from a continued supportive sentiment in its German and Polish core end-markets this year and in 2017 and to lift significant synergies from the integration of its Core East and Core West operations over the next three years. This should enable the company to continue improving its Moody's-adjusted credit metrics which position the company strongly in its current rating category, as indicated in the positive outlook."

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