Fitch assigns La Doria B, notes B+

Fitch Ratings said it assigned La Doria SpA’s planned €500 million of senior secured notes an expected B+ rating with an RR3 recovery rating. The agency also gave the company an expected B first-time long-term issuer default rating with a positive outlook. F

“La Doria's ratings primarily reflect its niche scale and concentrated retail customer base, which is partly mitigated by its long-standing customer relationships and adequate operating profitability for a private-label food-processing company. The IDR is also anchored in La Doria's moderate leverage metrics and sustained positive free cash flow (FCF).

“Fitch projects La Doria will be able to generate modest EBITDA growth, supporting low single-digit FCF margins and leading to adequate leverage headroom. Organic revenue expansion and EBITDA margin improvements, including through internal efficiencies and product-mix upgrades, will firmly place La Doria within our sensitivities for a B+ upgrade over the next 12 to 18 months, which is reflected in the positive outlook,” the agency said in a press release.

La Doria plans to use the proceeds to repay the outstanding 2022 financing and to fund €125 million of distributions to the shareholders.

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