Moody’s Investors Service has assigned a B1 corporate family rating and B1-PD probability of default rating to OCTAL Holding SAOC.
Concurrently, Moody’s has also assigned B1 instrument ratings to the proposed US$300mn senior unsecured notes issued by OCTAL Finance BV and due in 2023. The outlook on all ratings is stable. This is the first time Moody’s has assigned a rating to OCTAL, the ratings agency said in a press statement.
Moody’s said that the ratings reflect OCTAL’s; strong market position in monolayer PET sheet, exposure to relatively stable end markets, proprietary production process allowing for a low cost base and some degree of customer retention, and prudent financial policies including no planned dividend outflows, limited capital investment needs and limited appetite for acquisitions.
‘OCTAL benefits from a strong competitive position in the monolayer PET sheet subsegment of the plastic packaging market in which it claims leading positions in Europe, North America and MENA region’, Moody’s said.
The ratings agency said that OCTAL’s PET sheets benefit from higher margins than the more commoditised PET resin and contributed to 79 per cent of the company’s Ebitda in 2017 against 47 per cent of sales over the period.
The company exports to more than 84 countries worldwide but is subject to a strong level of customer concentration, with its top ten customers representing around 50 per cent of revenues, Moody’s added.
It said that the stable outlook reflects Moody’s expectation of sustained PET prices in the next 12-18 months, which should allow OCTAL to sustain sales growth and margins at their current levels.
Concurrently, Moody’s has also assigned B1 instrument ratings to the proposed US$300mn senior unsecured notes issued by OCTAL Finance BV and due in 2023. The outlook on all ratings is stable. This is the first time Moody’s has assigned a rating to OCTAL, the ratings agency said in a press statement.
Moody’s said that the ratings reflect OCTAL’s; strong market position in monolayer PET sheet, exposure to relatively stable end markets, proprietary production process allowing for a low cost base and some degree of customer retention, and prudent financial policies including no planned dividend outflows, limited capital investment needs and limited appetite for acquisitions.
‘OCTAL benefits from a strong competitive position in the monolayer PET sheet subsegment of the plastic packaging market in which it claims leading positions in Europe, North America and MENA region’, Moody’s said.
The ratings agency said that OCTAL’s PET sheets benefit from higher margins than the more commoditised PET resin and contributed to 79 per cent of the company’s Ebitda in 2017 against 47 per cent of sales over the period.
The company exports to more than 84 countries worldwide but is subject to a strong level of customer concentration, with its top ten customers representing around 50 per cent of revenues, Moody’s added.
It said that the stable outlook reflects Moody’s expectation of sustained PET prices in the next 12-18 months, which should allow OCTAL to sustain sales growth and margins at their current levels.
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