Moody’s ups Resolute, rates loans B2

Moody's Investors Service said it upgraded Resolute Investment Managers, Inc.’s (RIM) corporate family rating to B2 from Caa2 following completion of its debt restructuring. The agency also assigned a B2 rating to RIM's $350 million senior secured first-lien term loan due April 2027 and a B2 rating to its $40 million senior secured first-lien revolving credit facility due January 2027.

Concurrently, Moody's also raised RIM's probability of default rating to B2-PD from Caa2-PD and senior secured first-lien bank credit facilities to B2 from Caa2. The agency appended a limited default /LD designation to RIM's B2-PD probability of default rating. The outlook was changed to stable from negative.

“The ratings assignments reflect the closing of RIM's debt restructuring which resulted in reducing debt by $264 million or 42% and a change in its private equity ownership. The company is now owned and controlled by its lenders post the transaction,” Moody’s said in a press release.

The agency noted, “Under the new ownership structure, RIM is expected to adopt more conservative financial policies, including financial covenants meant to provide greater creditor protections than the existing credit facility.”

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