Moody’s snips Mooney

Moody’s Investors Service said it lowered the rating on Mooney Group SpA’s €530 million of senior secured notes due 2026 to B3 from B2, its corporate family rating to B3 from B2 and the company’s probability of default rating to B3-PD from B2-PD. The agency also revised the outlook to stable from negative.

"The rating action reflects the company's weaker-than-expected financial performance over the past 18 months, characterized by lower-than-expected revenue and EBITDA, with Moody's-adjusted leverage remaining elevated and limited Moody's-adjusted free cash flow (FCF) generation," said Fabrizio Marchesi, a Moody's vice president, senior analyst and lead analyst for the company, in a press release.

"Although Moody's expects that the company will moderately grow earnings over the next 12-18 months, its financial metrics are likely to remain outside of the triggers previously set for a B2 CFR," Marchesi added.

The agency said it expects Mooney will increase its Moody's-adjusted EBITDA towards €105 million and €110 million by December 2023 and 2024, respectively, but its Moody's-adjusted leverage will remain high at around 7.5x as of Dec. 31, 2023, and 7x as of Dec. 31, 2024.

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