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Moody's Investors Service Inc.

Moody's Downgrades Manuchar Group BV's Long-Term Corporate Family Rating

Strategic Insights

— 1 min read

Moody's Investors Service has downgraded Manuchar Group BV's long-term corporate family rating (CFR) and probability of default rating (PDR) to B3 and B3-PD, respectively. The downgrade reflects the company's weak credit metrics, including a Moody's-adjusted EBITA interest coverage of 1.2x and a Moody's-adjusted gross debt/EBITDA of 6.3x. The ratings incorporate the expectation that the company will execute its proposed refinancing transaction, which includes a new $85 million super senior revolving credit facility (SSRCF) and a EUR415 million backed senior secured floating rate notes due 2032. The outlook remains stable, reflecting our expectation that the company will maintain credit metrics commensurate with the B3 rating over the next 18 months.

Key Takeaways:

  • Manuchar Group BV's long-term corporate family rating (CFR) and probability of default rating (PDR) were downgraded to B3 and B3-PD, respectively, by Moody's Investors Service.
  • The downgrade reflects the company's weak credit metrics, including a Moody's-adjusted EBITA interest coverage of 1.2x and a Moody's-adjusted gross debt/EBITDA of 6.3x.
  • The ratings incorporate the expectation that the company will execute its proposed refinancing transaction, which includes a new $85 million super senior revolving credit facility (SSRCF) and a EUR415 million backed senior secured floating rate notes due 2032.
  • The outlook remains stable, reflecting our expectation that the company will maintain credit metrics commensurate with the B3 rating over the next 18 months.
  • Manuchar's liquidity is adequate, with an estimated cash balance of around $47 million and access to a $85 million SSRCF.

Statistics:

  • Moody's-adjusted EBITA interest coverage: 1.2x
  • Moody's-adjusted gross debt/EBITDA: 6.3x
  • Company-generated revenue: $1.3 billion (last 12 months ended March 2025)
  • Company-adjusted EBITDA: $94 million (last 12 months ended March 2025, $111 million pro-forma the acquisition of Proquiel Quimicos Ltda)
  • Proposed capital structure: EUR415 million backed senior secured floating rate notes due 2032 and $85 million SSRCF

Sources:

  • Moody's Investors Service. (n.d.). Manuchar Group BV: CFR rating changed, outlook stable.
  • Moody's. (2022). Distribution and Supply Chain Services.
  • Lone Star Fund. (n.d.). Company Profile: Manuchar Group BV.

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