Engineering Ingegneria Informatica S.p.A.: Update to credit analysis

Engineering Ingegneria Informatica S.p.A.: Update following downgrade to B3 - Credit Opinion – 2024/03/12 – US$ 250.00 – ... or the company) corporate family rating (CFR) has recently been downgraded to B3 with stable outlook, reflecting the company's weak financial metrics, characterized by elevated leverage and negative Moody's- adjusted free cash flow (FCF) as shown in Exhibit 1. Although we expect Engineering to grow revenue and EBITDA going forward, its financial metrics are likely to improve only gradually and thus remain consistent with a B3 CFR for at least the next two years. The rating also assumes that the company will refinance its debt maturities successfully in a timely manner. More generally, Engineering's B3 CFR is supported by the company's leading market position and strong technical know-how; an attractive Italian IT services market with good growth prospects; and a sizeable repeat customer base, with high customer retention. Concurrently, the rating is constrained by Engineering's limited geographical diversification and significant...

Moody's downgrades Engineering's CFR to B3; outlook changed to stable - Rating Action – 2024/03/01 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Centurion Bidco S.p.A.: Covenant Quality Post-Sale Snapshot: ¬605m 5.875% Senior Secured Notes due 2026 - Covenant Quality Assessment – 2023/09/06 – US$ 750.00 – ...Score: Weakest (5.00) Any restricted payment ("RP") can be made if the cons. total net leverage ratio 3.25x. With an estimated initial ratio of 3.4x, the Issuer is not able to satisfy the test on issue date. Until such time as the ratio is satisfied, the Issuer can make restricted payments with the accumulating credit under the RP income basket and carve-outs. + Restricted payments. All 4 standard RP categories (dividends, capital stock, subordinated debt, restricted investments) plus subordinated shareholder funding. + RP income basket. 50% cons. net income ("CNI") basket, subject to no default and 1 debt test (standard). Start dates. RPs and additions: 23 July 2020 ("Acquisition Closing Date"); CNI basket: first day of the first fiscal quarter in which the acquisition closing date occurs. Upfront credit: 20m. + Re-classification of RPs to RP income basket. Not expressly allowed. + Non-cash additions to RP income basket. Liquidated investments and unrestricted subsidiaries redesignated...

Centurion Bidco S.p.A.: Covenant Quality Pre-Sale Snapshot: ¬385m __% Senior Secured Notes due 2028 - Covenant Quality Assessment – 2023/05/05 – US$ 750.00 – ...Score: Weakest (5.00) Any restricted payment ("RP") can be made if the cons. total net leverage ratio 3.25x. With an estimated initial ratio of 3.9x, the Issuer is not able to satisfy the test on issue date. Until such time as the ratio is satisfied, the Issuer can make restricted payments with the accumulating credit under the RP income basket and carve-outs. + Restricted payments. All 4 standard RP categories (dividends, capital stock, subordinated debt, restricted investments) plus subordinated shareholder funding. + RP income basket. 50% cons. net income ("CNI") basket, subject to no default and 1 debt test (standard). Start dates. RPs and additions: engineering acquisition date (July/23/2020); CNI basket: first day of the first fiscal quarter prior to the engineering acquisition dates. Upfront credit: 20m. + Non-cash asset valuation. Non-cash additions to RP income basket. Liquidated investments and unrestricted subsidiaries redesignated as restricted are valued at FMV at time of...

Moody's assigns a B2 rating to Engineering's new backed senior secured notes - Rating Action – 2023/05/04 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Moody's affirms Engineering's B2 CFR, outlook changed to negative - Rating Action – 2022/12/02 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Centurion Bidco S.p.A.: Update to credit analysis - Credit Opinion – 2021/10/07 – US$ 250.00 – ...Centurion Bidco S.p.A.'s (Engineering) B2 corporate family rating (CFR) and stable outlook are supported by its leading market position and technical expertise; an attractive Italian IT market; relatively high switching costs for its services and good customer retention; and our expectation of revenue and EBITDA growth over the next 12-18 months, which will provide an opportunity to improve leverage towards 5x as shown in Exhibit 1, and increase Moody's- adjusted free cash flow (FCF)/debt towards 5%. Concurrently, the CFR is constrained by Engineering's limited geographical diversification and significant customer concentration; strong competition in the Italian IT services market; risks associated with the company's large working capital position; and the possibility of delays in leverage reduction because of debt-funded acquisitions or shareholder-friendly actions. Engineering's CFR also reflects our assessment of the effects on the company of the alleged breaches of the Italian Legislative...

Centurion Bidco S.p.A. - LGD Assessment – 2020/10/26 – US$ 750.00