Moody’s gives B1 to Amer Sports notes

Moody's Investors Service said it assigned a B1 rating to Amer Sports Co.'s new $600 million of backed senior secured notes due 2031.

All other ratings of Amer Sports Holding 1 Oy are unaffected, including the B2 long-term corporate family rating, the B2-PD probability of default rating and the B2 backed senior secured ratings on Amer Sports Holding's €1.7 billion backed senior secured term loan B due March 2026 and on the €315 million backed senior secured revolving credit facility due September 2025, which remain on review for upgrade. Moody's said it expects to withdraw the ratings on the existing debt instruments once they are repaid.

Amer Sports Holding plans to use the proceeds to complete the repayment of its €1.7 billion TLB.

“The B1 rating for the proposed new senior secured notes is based on the expectation that Amer Sport's CFR will be upgraded to B1 once the refinancing transactions are closed under the currently expected terms. The rating agency assumes that Amer Sports will successfully complete the refinancing at a manageable interest cost, and in line with the proposed terms and conditions,” Moody’s said in a statement.

The agency added, “Although the refinancing is leverage neutral, Moody's anticipates further de-leveraging in the next 12-18 months as the company's retail expansion strategy in China and the U.S., together with still supportive consumer demand, will continue to drive earnings growth.”

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