Rekeep - comment

Moody’s changed the outlook to negative for Rekeep’s bonds citing the same issues we have previously written about - the poor cash conversion and upcoming maturities.  The overall tone of Moody’s rating update is more positive than we would have expected, with Moody’s citing operational improvement from growth in Poland and loss reduction in Saudi Arabia.  We concur on these two points but we have not modelled any additional improvements from what Moody’s refers to as “extraordinary maintenance activities", especially in Italy.  This must be additional guidance shared by the Company with Moody’s.  

Bonds are still offered in the low 90’s and with no liquidity issues, a 13% yield is still attractive to Feb 2026.