Moody's Ratings changes Rodenstock's outlook to negative; affirms B3 ratings

Iris HoldCo GmbH: Update following change in outlook to negative - Credit Opinion – 2024/04/30 – US$ 250.00 – ...Iris HoldCo GmbH's (Rodenstock) B3 corporate family rating (CFR) is supported by the company's established market position as the world's fourth-largest ophthalmic lens producer and its strong position in core European markets; its comprehensive offering in both branded and private-label corrective lenses with a focus on high-end progressive biometric lenses, complemented by the sale of equipment and services for opticians; favourable fundamental demand drivers of lenses, supported by the increasing average age of lens wearers in the main European markets and growing population in emerging markets; and our expectation of operational improvement in the next 12-18 months, aided by cost-saving initiatives resulting in positive free cash flow (FCF) and leverage reduction. The rating is also supported by Rodenstock's still-adequate, although weakening, liquidity. Concurrently, Rodenstock's ratings are constrained by its high leverage and weak interest coverage metrics; its smaller size than...

Iris HoldCo GmbH - LGD Assessment – 2023/06/20 – US$ 750.00

Iris HoldCo GmbH: Update to credit analysis - Credit Opinion – 2023/04/21 – US$ 250.00 – ...Iris HoldCo GmbH's (Rodenstock) B3 corporate family rating (CFR) is supported by the company's established market position as the world's fourth-largest ophthalmic lens producer and its strong position in core European markets; its comprehensive offering in both branded and private-label corrective lenses with a focus on high-end progressive biometric lenses, complemented by the sale of equipment and services for opticians; favourable fundamental demand drivers of lenses, supported by the increasing average age of lens wearers in the main European markets and growing population in emerging markets; and expectations of operational improvement in the next 12-18 months, aided by cost-saving initiatives resulting in positive free cash flow (FCF) and leverage reduction. The rating is also supported by the company's adequate liquidity. Concurrently, Rodenstock's B3 CFR is constrained by the company's high leverage; its smaller size than that of its direct peers; the risk that further consolidation...

Iris HoldCo GmbH - LGD Assessment – 2022/07/07 – US$ 750.00

Iris HoldCo GmbH: Update following Indo Optical acquisition - Credit Opinion – 2022/06/21 – US$ 250.00 – ...Iris HoldCo GmbH's (Rodenstock) B3 corporate family rating (CFR) with a stable outlook reflects our expectation that the company will maintain positive operating performance, with continued sales and EBITDA over the next 12 to 18 months. The acquisition of Indo Optical will improve Rodenstock's business profile, adding new markets, complementing its product range and offering good cross-selling opportunities. However, the 170 million additional debt issuance to finance the deal will slow leverage reduction. We expect the company's Moody's-adjusted gross leverage to remain slightly above 7.5x through 2023, leaving its rating weakly positioned. However, this high leverage is mitigated by Rodenstock's good liquidity and solid cash generation capacity. The rating also factors in the company's established market position as the world's fourth- largest ophthalmic lens producer and its strong position in core European markets, notwithstanding its smaller size than direct peers; its comprehensive...

Iris HoldCo GmbH: Update following B3 rating assignment after buy-out and refinancing - Credit Opinion – 2021/05/12 – US$ 250.00 – ...Iris HoldCo GmbH's (Rodenstock) B3 corporate family rating (CFR) with a stable outlook reflects our expectation that the company will continue to gradually reduce its leverage on the back of continued EBITDA growth. Following the refinancing, its Moody's-adjusted gross leverage will peak above 9x in 2021, leaving its rating weakly positioned. However, we expect Rodenstock will return to its trajectory of revenue growth and improving profitability. We forecast its leverage will progressively reduce to 8x or below, and its retained cash flow/net debt will improve above 8% in 2022. Rodenstock's good liquidity also supports the rating. Rodenstock's rating also factors in its established market position as the world's fourth-largest ophthalmic lens producer and strong position in core European markets, notwithstanding its smaller size than its direct peers; its comprehensive offering in both branded and private-label corrective lenses, complemented by a focused eyewear products offering and...