Moody’s gives Mavis loan B2

Moody’s Investors Service said it assigned a B2 rating to Mavis Tire Express Services Corp.’s proposed upsized loan. The agency also affirmed Mavis’ B3 corporate family rating.

“Today’s affirmation acknowledges Mavis’ proposed acquisition of Town Fair Tire, which Moody’s believes is sensible from both geographic and product fit perspectives,” stated Charlie O’Shea, a Moody’s vice president, in a press release. “Both companies have demonstrated their resilience in dealing with the effects of the Covid-19 pandemic, and the purchase price is reasonable,” continued O’Shea.

“That said, governance remains a critical rating factor given Mavis’ leverage remains very elevated as its financial strategies continue to support debt-financed acquisitions balanced by its proven ability to seamlessly and expeditiously integrate its acquisitions, as well as its prudent and effective greenfield and brownfield new center development,” added O’Shea.

The outlook is stable.

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