S&P downgrades FCC to CCC

Standard & Poor's said it lowered its issuer credit and senior unsecured ratings on FCC Holdings LLC to CCC from CCC+.

The outlook on the issuer credit rating is negative.

S&P said the downgrade follows FCC Holdings' signing of a definitive agreement to sell its asset-based lending portfolio to an affiliate of Ares Management LP during the second quarter of 2015.

"We believe the sale is a significant step in FCC's strategy to wind down its loan portfolio and repay its lenders," S&P credit analyst Igor Koyfman said in a news release.

"The ABL assets represent about three-quarters of the company's total assets and have been funded through two secured revolving credit lines and one term securitization, which we expect will largely be repaid concurrently with the transaction."

© 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.