Moody’s upgrades ALG loans to B1

Moody's Investors Service said it upgraded ALG BV's existing $20 million revolving credit facility to B1 and existing $120 million (originally $140 million) first-lien term loans to B1.

At the same time, the agency affirmed ALG's B2 corporate family rating and B2-PD probability of default rating.

In light of the cancellation of the proposed transaction, Moody's withdrew the ratings on ALG's proposed $50 million revolving credit facility, $330 million first-lien term loan and $130 million second-lien term loan.

The outlook remains stable.

Moody’s said the upgrade of the revolver and term loans reflects the application of the agency’s Loss Given Default Methodology in a manner similar with other services companies which results in the exclusion of ALG's tour payables from the LGD model.

As a consequence, the B1 rating on the first-lien credit facilities is one notch higher than the B2 corporate family rating and acknowledges its senior position in the capital structure ahead of the second-lien term loan. The Caa1 rating on the $75 million second-lien term loan acknowledges its junior position to the first-lien debt as well as its smaller size within the capital structure.

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