Moody’s rates Play Topco notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to the proposed issuance of €500 million (PLN 2.15 billion equivalent) of payment-in-kind toggle notes due 2022 by Play Topco SA, the ultimate parent of P4 Sp. zoo.

Concurrently, the agency affirmed Play Topco's B2 corporate family rating and downgraded the probability of default rating to B2-PD from B1-PD.

The outlook remains stable.

The ratings on the existing debt instruments at Play Topco, Play Finance 1 SA and Play Finance 2 SA are unchanged and will be withdrawn once they are repaid with proceeds from the new PLN 7 billion senior facilities agreement that Play has recently signed.

The rating action follows the announcement that the company plans to refinance its existing notes at Play Finance 1 and Play Finance 2 as well as the existing €415 million of PIK notes at Play Topco with PLN 7 billion of term loans in addition to issuing €500 million of new PIK toggle notes at Play Topco in order to fund a dividend distribution to shareholders.

"The rating affirmation reflects that this transaction continues a series of leveraging dividend recapitalizations, whilst acknowledging the company's solid operating and financial performance with credit metrics still aligned with its current rating," Alejandro Nunez, Moody's vice president, senior analyst and lead analyst for Play, said in a news release.

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