Announcement of Periodic Evaluation: Moody’s proclaims completion of a periodic assessment of scores of Arctic Glacier U.S.A., Inc.International Credit score Analysis – 26 Feb 2021New York, February 26, 2021 — Moody’s Buyers Service (“Moody’s”) has accomplished a periodic assessment of the scores of Arctic Glacier U.S.A., Inc. and different scores which are related to the identical analytical unit. The assessment was performed by way of a portfolio assessment dialogue held on 23 February 2021 wherein Moody’s reassessed the appropriateness of the scores within the context of the related principal methodology (ies), latest developments, and a comparability of the monetary and working profile to equally rated friends. The assessment didn’t contain a ranking committee. Since 1 January 2019, Moody’s follow has been to situation a press launch following every periodic assessment to announce its completion.This publication doesn’t announce a credit standing motion and isn’t a sign of whether or not or not a credit standing motion is probably going within the close to future. Credit score scores and outlook/assessment standing can’t be modified in a portfolio assessment and therefore should not impacted by this announcement. For any credit score scores referenced on this publication, please see the scores tab on the issuer/entity web page on www.moodys.com for essentially the most up to date credit standing motion data and ranking historical past.Key ranking concerns are summarized under.Arctic Glacier’s Caa1 credit score profile displays its small relative scale with annual income of $276 million, and its excessive monetary leverage due to weak ice demand associated to the coronavirus outbreak. The corporate has a slim product focus with the overwhelming majority of income associated to the sale of ice-related merchandise. Moody’s expects efforts to include the coronavirus outbreak akin to stay-at-home orders and shoppers’ want to keep up social distancing will negatively have an effect on demand for the corporate’s merchandise at the least by way of the present outbreak. Arctic Glacier has excessive publicity to climate and really excessive seasonality, producing most of its income and earnings through the summer season months. Governance elements primarily relate to the corporate’s aggressive monetary insurance policies below personal fairness possession. The corporate’s weak liquidity displays the approaching revolver maturity and anticipated weak cushion below the monetary upkeep covenant successfully limiting the provision below its $60 million revolver facility due March 2022, which supplies restricted monetary flexibility to fund seasonal destructive money flows exterior peak ice consumption months.The credit score profile additionally displays Arctic Glacier’s place because the second largest producer and distributor of ice within the US and main place within the smaller Canadian market. The corporate additionally has a comparatively various buyer base and generates EBITDA margins of round 25%. The corporate ought to profit from elevated demand as stay-at-home orders are lifted, nevertheless there may be uncertainty across the timing and client’s propensity to renew group gatherings till a vaccine or different measures are efficient at combating the coronavirus.This doc summarizes Moody’s view as of the publication date and won’t be up to date till the subsequent periodic assessment announcement, which is able to incorporate materials modifications in credit score circumstances (if any) through the intervening interval.The principal methodology used for this assessment was Shopper Packaged Items Methodology revealed in February 2020. Please see the Score Methodologies web page on www.moodys.com for a duplicate of this system.This announcement applies solely to EU rated, UK rated, EU endorsed and UK endorsed scores. Non EU rated, non UK rated, non EU endorsed and non UK endorsed scores could also be referenced above to the extent needed, if they’re a part of the identical analytical unit.This publication doesn’t announce a credit standing motion. For any credit score scores referenced on this publication, please see the scores tab on the issuer/entity web page on www.moodys.com for essentially the most up to date credit standing motion data and ranking historical past. Oliver Alcantara Analyst Company Finance Group Moody’s Buyers Service, Inc. 250 Greenwich Avenue New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 John E. Puchalla, CFA Affiliate Managing Director Company Finance Group JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Releasing Workplace: Moody’s Buyers Service, Inc. 250 Greenwich Avenue New York, NY 10007 U.S.A. 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