Moody’s downgrades Atotech

Moody’s Investors Service said it downgraded Atotech UK Topco Ltd.’s corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD.

Moody’s also downgraded the ratings of the $1.6 billion equivalent senior secured term loans due in 2024 and the $250 million revolving credit facility due in 2022, all co-borrowed by Alpha 3 BV and Alpha US Bidco, Inc., to B2 from B1 and downgraded the rating of the $425 million senior unsecured notes due 2025, co-issued by Alpha 2 BV and Alpha US Bidco to Caa2 from Caa1.

The agency also downgraded the rating of the $300 million of PIK toggle notes due in 2023 issued by Alpha 2, a subsidiary of Atotech UK and parent company of Alpha 3, to Caa2 from Caa1.

The downgrade reflects Moody’s forecast that Atotech’s performance in 2020 will suffer materially from the severe downturn of its key end markets, particularly the automotive industry, which in parts of the world has temporarily stopped production owing to the widening spread of the coronavirus outbreak, the agency said.

Moody’s changed the outlook to stable from negative.

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