Moody's changes Vermaat view to negative

Moody's Investors Service said it changed the outlook to negative from stable and affirmed the B3 corporate family rating and B3-PD probability of default rating of Vincent Midco BV (Vermaat),

Concurrently, Moody's changed the outlook to negative from stable and affirmed the B2 ratings on the first-lien senior secured term loan B and multi-currency revolving credit facility both due 2026 at Vincent Bidco BV, a direct subsidiary of Vincent Midco.

"The rating action reflects the protracted impact of the coronavirus outbreak on the company's main end markets notably corporates, leisure, and travel despite easing of confinement measures in The Netherlands," said Eric Kang, a Moody's vice president, senior analyst and lead analyst for Vermaat, in a press release.

"While the company's liquidity is adequate, there is a risk that its credit metrics may not recover to levels more commensurate with the B3 CFR over the next 12-18 months notably a Moody's-adjusted debt/EBITDA sustainably below 7x, and margins and free cash flow back to pre-crisis levels", added Kang.

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