Moody's rates AutoForm, 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 CEP V Investment 23 Sarl (AutoForm), the holding company of the automotive software vendor AutoForm.

Concurrently, Moody's said it assigned a B2 rating to the proposed €472 million senior secured term loan B and the €55 million senior secured multicurrency revolving credit facility, due in 2029 and 2028, respectively, to be issued by the company.

The outlook is stable.

“The B2 rating reflects AutoForm's leading positioning in sheet metal forming simulation software for the automotive sector, supported by a sticky customer base and a global footprint. The rating also benefits from positive market prospects and the solid free cash flow generation of the company,” said Luigi Bucci, Moody’s lead analyst for AutoForm, in a news release.

“At the same time, the rating also reflects AutoForm's high Moody's-adjusted starting leverage of 6.7x which is expected to reduce to below 6x within the next 12-18 months. The rating is also constrained by the company's exposure to a niche market with limited size.”

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