S&P lowers Avison Young

S&P said it lowered its issuer credit rating on Avison Young (Canada) Inc. to B- from B+. The outlook is stable.

S&P also lowered the issue rating on Avison Young's senior secured notes to B from B+ and revised the recovery rating on the senior secured notes to 2 from 3. The 2 recovery rating indicates an expectation of substantial recovery (85%) of principal in the event of a default scenario.

“The rating action follows Avison Young's announcement that it raised C$250 million through a preferred stock issuance to Caisse de depot et placement du Quebec (CDPQ), a Canada-based institutional investor. The company will use C$80 million of the proceeds to redeem an institutional shareholder and certain other non-management founders and former principals and use the remaining C$170 million as growth capital,” S&P said in a news release.

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