Moody’s lowers Towergate, debt

Moody's Investors Service said it downgraded the corporate family rating and probability of default rating on Towergate Holdings II Ltd. by two notches to Caa3 and Caa3-PD, respectively.

The senior instruments issued by Towergate Finance plc were also downgraded, with the senior secured downgraded three notches to Caa2 and the senior unsecured downgraded one notch to Ca.

All ratings have a developing outlook.

The revised ratings reflect Moody's view that, notwithstanding some progress by the group in terms of asset sales, the probability of some form of corporate restructuring is elevated.

Whilst recognizing the value of Towergate's strong U.K. insurance broker market presence and historically good, albeit declining, EBITDA profitability, the agency said it believes that the group is increasingly constrained in terms of its longer-term liquidity needs.

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