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Moody's assigns Avanti notes Caa1
Moody's Investors Service said it assigned a Caa1 corporate family rating and a B3-PD probability of default rating to Avanti Communications Group plc.
The agency also assigned a Caa1 rating on the $370 million senior secured notes due 2019 issued by Avanti.
The outlook is positive.
Avanti's Caa1 corporate family rating reflects the company's limited scale compared to its larger peers, weak credit metrics and limited financial flexibility, while also recognizing the young satellite fleet with long residual lives and focus on faster growing target markets. Moody's adjusted leverage as at June 30, 2014 will be above 10 times.
The notes will be used to repay existing bank debt and for general corporate purposes. While Avanti will not benefit from additional external liquidity in the form of a revolving credit facility, Moody's considers the current liquidity position to be adequate. The notes issued by Avanti rank at the same level as the corporate family rating reflecting the lack of more senior debt.
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