S&P rates Azelis BB+

S&P said it assigned a BB+ issuer rating to Azelis Group NV. Azelis is considering raising €400 million in new debt, the proceeds of which are expected to be used to refinance recently signed and closed acquisitions, repay its revolving credit facility and support further inorganic investments. The outlook is stable.

If Azelis secures the loans, it would boost the weighted average duration of existing financing by repaying €100 million drawn under its revolver and strengthening its liquidity with €70 million in cash overfunding.

“We expect Azelis will continue to report resilient results in 2023, despite the more challenging and uncertain macroeconomic conditions. We expect that Azelis will continue to report solid growth over the next two years, especially in Asia-Pacific, leading to organic revenue growth of about 3%-5%. We also expect that Azelis will maintain an above-average EBITDA margin at about 11%-11.5%, which is close to 2022 levels and higher than historical levels,” S&P said in a press release.

The agency said it also sees Azelis keeping its S&P Global Ratings-adjusted debt to EBITDA within the 3x-4x range in 2023-2024.

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