Moody's assigns Nuuday, loans B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and a B2-PD probability of default rating to Nuuday A/S, a 100% indirectly owned subsidiary of DKT Holdings ApS. Concurrently, Moody's gave B2 ratings to the company’s €500 million senior secured term loan B due 2027 and the €135 million senior secured revolving credit facility due 2026. The outlook on the ratings is stable.

"The B2 rating balances Nuuday's asset light business model and negative free cash flow generation expected over the next three years, with its leading market position in the Danish telecom market and its moderate leverage," says Carlos Winzer, a Moody’s senior vice president and lead analyst for Nuuday, in a press release.

The agency said it does expect gradual improvement in Nuuday’s revenue and cost savings as well as leverage hovering in the 3x range the next two to three years.

The term loan proceeds will be mainly used to partially repay the backed senior secured bonds issued by DKT Finance ApS, and fund capital spending at Nuuday.

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