Pfleiderer informed that the Moody’s rating agency upgraded its CFR (corporate family rating) from B1 to Ba3 with stable outlook.
According to the announcement, Moody’s had assigned provisional (P)Ba3 instrument ratings to the proposed EUR 350 million senior secured term loan B (TLB, 7-year) and EUR 100 million equivalent senior secured revolving credit facility (RCF, 5-year) to be raised by PCF GmbH, a direct subsidiary of Pfleiderer Group S.A. In Moody’s opinion, the upgrade primarily reflects the group’s sound EBITDA improvement during 2016 and expects Pfleiderer’s operating performance to develop favorably over the next two years, based on supportive economic indicators in its core regions Germany and Poland as well as forecast moderate expansion in residential new build activity and furniture demand growth, particularly in Germany.
The rating agency also recognized Pfleiderer’s proposed new capital structure, which Moody’s expects to result in substantial financing cost savings and to improve the group’s financial flexibility and cash flow generation accordingly.
Earlier Pfleiderer Group reported 12.5% increase of sustainable EBITDA amid 2.4% growth of net sales in 2016 y-o-y.
About Pfleiderer Group:
The company is a complete wood-based panel manufacturer. Its production and sales activities are comprised in the two regions Western Europe and Eastern Europe, each with independently operating Business Units marketing its own brands and products tailored to specific target groups.