Moody’s ups Vouvray CFR, rates loan B1

Moody's Investors Service said it upgraded Vouvray Midco Ltd.’s (holding and parent company to V.Group) corporate family rating to B1 from B2 and the probability of default rating to B1-PD from B2-PD.

Concurrently, the agency assigned a provisional B1 rating to the new $90 million six-year first-lien senior secured incremental term loan; affirmed both the senior secured B1 rating of the existing $275 million seven-year first-lien term loan and the Caa1 rating for the $110 million 7.5-year second-lien term loan issued by Vouvray US Finance LLC; and affirmed the B1 rating of the $35 million five-year senior secured revolving credit facility issued by Vouvray Acquisition Ltd.

All outlooks are is stable.

Moody's plans to withdraw the Caa1 rating on the 7.5-year loan once it is repaid as part of the proposed refinancing transaction.

Together, with a portion of cash on balance sheet, proceeds from the incremental first-lien term loan will be used to refinance the existing second-lien term loan debt facility and pay transaction costs.

Moody’s said the B1 corporate family rating reflects V.Group's (a) high financial leverage; (b) relative scale and diversity; and (c) dependence on key operational personnel, specifically fleet superintendents and skilled crew.

This is partially offset by the company's (a) leading market position in the marine operations segment; (b) diversified customer portfolio with long-term relationships; and (c) strong track record of growth and cash generation, the agency said.

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