Moody’s rates Saphilux B3, facilities B2

Moody's Investors Service said it assigned a B3 corporate family rating and B2-PD probability of default rating to Saphilux Sarl.

Concurrently, the agency assigned B2 instrument ratings to the €484 million senior secured term loan B, €30 million senior secured acquisition facility and €50 million senior secured revolving credit facility.

The outlook is stable.

Saphilux is the holding company of SGG and the topco entity of the new restricted group.

Moody’s said the B3 corporate family rating reflects SGG's (a) High financial leverage starting at around 8.3 times, although about 1.8 times is represented by the subordinated shareholder loan which does not comply with Moody's requirements for equity treatment; (b) recent and rapid acquisition growth with limited track record for the combined group; (c) regulatory and legal risks given the business model; and (d) geographic concentration in Europe.

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