Moody’s could raise Annington

Moody's Investors Service said it placed the B1 corporate family rating and B3-PD probability of default rating of Annington Ltd. under review for upgrade.

The Caa1 rating of the PIK toggle notes maturing in 2023 issued by Annington Finance No. 5 plc is unchanged and the agency expects to withdraw this rating shortly after its intended full repayment on July 22, 2017.

The action follows the announced £3.4 billion refinancing of Annington Ltd.’s debt.

“The refinancing greatly improves the company's credit fundamentals and financial flexibility, and will likely result in a multi notch upgrade to investment-grade,” Moody’s said in a news release.

“The key credit benefits include a vastly improved fixed-charge coverage, transitioning to a largely unencumbered asset base, collapsing the restricting securitization structure, and a much healthier debt maturity profile that removes the cliff refinance risk in 2021.”

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