Moody's rates Agile notes Ba3

Moody's Investors Service said it assigned Agile Group Holdings Ltd.’s planned dollar-denominated notes a Ba3 senior unsecured rating.

Agile's Ba3 senior unsecured bond rating is one notch under its corporate family rating because of structural subordination risk. “This subordination risk reflects the fact that most of Agile's claims are at the operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower,” Moody’s said in a press release.

Agile plans to use the proceeds to refinance offshore debt due within one year.

The notes will provide Agile with extra liquidity and lengthen its debt maturity profile, while the effect on its credit metrics will be limited because it will use the proceeds mainly to refinance existing debt, the agency noted.

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