Moody’s revises CAR view to positive

Moody’s Investors Service said it changed CAR Inc.’s outlook to positive from negative and affirmed its Caa1 corporate family rating.

On Thursday, CAR reported a unit of MBK Partners Fund IV received acceptances for more than 50% of the issued shares and voting rights and that it will become CAR’s majority shareholder.

“The outlook revision to positive from negative reflects the emergence of a majority shareholder for CAR, a significant development that will improve the company’s funding access and reduce uncertainty regarding its business development, which are key factors for its business operations,” said Gerwin Ho, a Moody’s vice president and senior credit officer, in a press release.

“The proceeds from a $175 million convertible bond that was issued on Jan. 15 by CAR to Mcqueen SS, a subsidiary of an investment fund that is also managed by MBK Partners, also support CAR’s debt repayment needs,” added Ho, who is also Moody’s lead analyst for CAR.

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