Moody's cuts Yell

Moody's Investors Service said it downgraded the corporate family rating of Owl Finance Ltd. to Caa2 from Caa1, as well as its probability of default rating to Caa2-PD from Caa1-PD. Owl Finance is the indirect owner of Yell Ltd.

Moody's also downgraded the rating for the £214 million of outstanding backed senior secured notes due 2023 issued by Yell Bondco plc to Caa2 from Caa1. The outlook is negative.

"The ratings downgrade reflects Yell's already challenged operating performance which will exacerbate due to the coronavirus related business disruptions in 2020 leading to a significant increase in customer churn with little to no new customer acquisitions during the closure period. This will lead to a significant deterioration in the company's profitability and credit metrics for the fiscal year (FY) ending 31st March 2021," said Gunjan Dixit, a Moody's vice president, senior credit officer and lead analyst for Yell, in a press release.

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