Moody's downgrades Central Parking to B2

Moody's Investors Service said it downgraded Central Parking Corp.'s corporate family and probability-of-default ratings to B2 from Ba3 and affirmed Central Parking Finance Trust's $78 million 5.25% convertible trust issued preferred securities (TIPS) at B2 (LGD5, 93%).

This concludes the review for possible downgrade begun on Feb. 22, and the outlook is stable.

Concurrently, Moody's converted the provisional B2 corporate family rating of KCPC Acquisition, Inc. into a definitive B2 corporate family rating in connection with the recently completed leveraged buyout of Central Parking.

The provisional Ba2 (LGD2) ratings assigned to KCPC's $80 million six-year first-lien revolving credit facility, $235 million seven-year first-lien term loan facility and $55 million seven-year first-lien synthetic letter-of-credit facility and the provisional B2 (LGD4) rating assigned to its $50 million 71/2-year second-lien term loan facility were also converted to definitive ratings, and the loss-given-default rates assigned to the first-lien and second-lien loans were changed to 20% from 19% and to 53% from 51%, respectively.

KCPC established an escrow account in connection with the closing of the buyout to fund the expected conversion of the TIPS into cash consideration. If a material amount of TIPS remain outstanding, the agency expects to lower the TIPS rating to Caa1. Moody's noted that it expects to withdraw the corporate family and probability-of-default ratings of Central Parking in the near term.

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