Moody's ups NOMA Luxembourg

Moody's Investors Service said it upgraded the corporate family rating of NOMA Luxembourg SA, direct owner of Sicpa Holding SA, to Ba3 from B1.The company's senior secured credit facilities were upgraded to Ba2 from Ba3 and the senior notes to B1 from B3.

The outlook is positive.

The upgrade reflects the substantial reduction in the company's debt following the divesture of its Packaging Inks division combined with the strong performance of Sicpa's security inks division, the agency said.

Moreover, the upgrade reflects Moody's expectation that the company's credit metrics will continue to improve as a result of Sicpa's exclusive focus on its security inks and product security businesses.

The ratings also incorporate Moody's expectation that the company's free cash flow will be constrained over the next 18 months as a result of higher-than-normal capital expenditure and by Sicpa's corporate governance and the limited independence of its board.

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