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Moody's rates TMD Friction notes B3
Moody's Investors Service said it assigned B3 corporate family and probability-of-default ratings to TMD Friction Group SA and a provisional B3 rating (LGD3, 47%) to the proposed €160 million senior secured notes.
The outlook is stable.
Proceeds will be used for a distribution of €132 million to Pamplona Capital Management by way of refinancing existing shareholder loans plus accumulated interest and as additional liquidity of about €18 million.
The B3 corporate family rating reflects TMD's strong position in the original equipment and aftermarket for automotive brake pads and linings, large share of revenues in the usually more resilient aftermarket, established relationships with automobile manufacturers and auto equipment suppliers, and enhanced cost base on the back of successful rationalization and cost reduction initiatives in recent years, according to the agency.
The rating is constrained by a limited diversification in terms of geography and product scope, the agency said.
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