Moody’s ups Takko Fashion, rates notes B2

Moody's Investors Service said it upgraded Takko Fashion Sarl’s corporate family rating to B2 from Caa1 and probability of default rating to B2-PD, from B3-PD.

Concurrently, the agency assigned a B2 (LGD4) rating to the proposed new €510 million senior secured fixed and floating notes to be issued by Takko Luxembourg 2 SCA, the proceeds of which will be used to repay that company's existing notes totaling €525 million.

The ratings of the existing notes will be withdrawn upon repayment but in the meantime continue to be rated Caa1.

The outlook is stable.

"The upgrade to B2 primarily reflects the substantial and sustained improvement in operating performance, as well as the launch of the refinancing transaction. Together, those elements put the company and its capital structure on a sustainable path," David Beadle, Moody's vice president, senior credit officer and lead analyst for Takko, said in a news release.

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