Moody’s assigns B3 to Ardonagh Group

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Ardonagh Group Holdings Ltd. The agency also assigned B3 ratings to the new $750 million and €500 million of backed senior secured notes being issued by Ardonagh Finco Ltd. and a Caa2 rating to the new $1 billion of backed senior unsecured notes being issued by Ardonagh Group Finance Ltd. The outlook is stable.

“The B3 CFR reflects Ardonagh's broad business mix and a large and growing international market presence, which support revenue diversification. It also reflects the company's good organic growth and healthy EBITDA margins. These strengths are tempered by its high financial leverage, its historically weak free cash flow generation and material bottom-line losses,” Moody’s said in a statement.

Ardonagh is refinancing its outstanding facilities, reducing foreign exchange risk, and funding near-term merger and acquisition. “Pro forma for the proposed transaction and considering the effect of the disposal of the retail business and associated debt repayment, Ardonagh's total gross financial debt will reduce to £3.8 billion from £4.1 billion as at December 2023,” the agency said.

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