Moody's reviews IDH for upgrade

Moody's Investors Service said it placed on review for upgrade the ratings of Turnstone Midco 2 Ltd. (IDH), including the Caa2-PD probability of default rating.

Concurrently, the agency also placed on review for upgrade the Caa2 ratings on the backed senior secured notes due 2022 and the Ca rating on the backed senior secured second-lien notes due 2023, both issued by IDH Finance plc, which is wholly-owned by IDH. Moody’s changed the outlook to under review from negative.

Moody's said the review follows the announcement that IDH’s majority shareholders had reached a binding sale agreement with an entity controlled by a financial sponsor to sell 100% of the business.

“The review for possible upgrade reflects Moody's expectation that the completion of the sale would result in the repayment of all the group's outstanding debt. While it is known that the purchaser is a financial sponsor and therefore, it seems highly likely that a new levered capital structure would be put in place, the review for upgrade initiated by Moody's reflects the rating agency's view that IDH's future capital structure will, in any event, be more sustainable and carry lower leverage than the existing one (based on the same EBITDA),” the agency said in a press release.

© 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.