Moody's ups Dollarama

Moody's Investors Service said it upgraded the corporate family rating of Dollarama Group Holdings LP to Ba2 from Ba3, affirmed its probability of default rating at Ba3 and speculative-grade liquidity rating at SGL-2.

The outlook is stable.

Moody's said it withdrew Dollarama's B2 senior subordinate rating as well as the Ba1 senior secured rating of Dollarama's subsidiary, Dollarama Group LP as those related obligations have been fully repaid with proceeds from a new credit facility that the agency said it was not asked to rate.

Moody's also said it will withdraw Dollarama's probability of default and speculative-grade liquidity ratings and will withdraw its corporate family rating soon.

The upgrade reflects a view that Bain Capital's further reduction in its ownership of Dollarama's parent, Dollarama Inc., lessens the likelihood that Bain will seek to limit any further improvement to Dollarama's capital structure, Moody's said.

The ratings also consider its leading market position in a segment of retailing that is relatively resilient to economic trends, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.