Moody’s trims RC Buyer first-lien loans

Moody’s Investors Service said it downgraded the first-lien loans of RC Buyer, Inc. (Rough Country) to B2 from B1. The agency, however, affirmed Rough Country’s B2 corporate family and probability of default ratings and its Caa1 senior secured second-lien term loan rating.

“The downgrade of the rating on the first-lien credit facilities, which consist of a revolver and a first-lien term loan, reflects the elimination of the loss absorption within the capital structure that had been provided by the second-lien term loan,” Moody’s said in a statement.

The proceeds from a planned $100 million incremental first-lien term loan will be used to repay a portion of the company's second-lien term loan. “First-lien debt now represents the preponderance of the obligations in Rough Country's capital structure,” the agency noted.

The outlook remains stable.

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