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Moody's downgrades Versatel to Ca
Moody's Investors Service downgraded Versatel Telecom International NV's debt to Ca from B3 after the company announced an exchange offer.
The action affects $1.54 billion of debt including Versatel's $225.0 million 13.25% senior notes (with warrants) due 2008; its $150.0 million 13.25% senior notes (with warrants) due 2008; its $180.0 million 11.875% senior notes due 2009; its €120.0 million 11.875% senior notes due 2009; its €300.0 million 11.25% senior notes due 2010; its €300.0 million 4.0% senior convertible notes due 2004; its €360.0 million 4.0% senior convertible notes due 2005.
Moody's said that although Versatel has not defaulted the rating agency considers "distressed exchanges" to be an event of default.
Moody's upgrades Whole Foods Market bank loan to Ba3, convertibles to B1
Moody's Investors Service upgraded Whole Foods Market, Inc., including its $220.0 million unsecured bank loan, raised to Ba2 from Ba3, and its $135.8 million 5% zero-coupon convertible subordinated notes due 2018, raised to B1 from B2. The outlook is stable.
Moody's said its upgrade was prompted by "the strong performance of the company over the past three years and our expectation that operations will remain strong as the company continues its business plan of quickly growing store count. Quarterly comparable store sales have stayed above 7% for the past four years and gross margin has improved to 34.5% for the twelve months ending June 2001 versus 32.9% for Fiscal 1997. Cash flow is strong with lease adjusted leverage of 2.7 times and EBITDA equal to cash interest expense of about 18 times, even though the company has added additional debt to finance the rapid pace of new store construction."
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