Moody's upgrades Synamedia

Moody's Investors Service said it upgraded Triton UK Midco Ltd.'s (Synamedia) corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

Concurrently, the agency upgraded to B2 from B3 the ratings of the $305 million guaranteed first-lien senior secured term loan due 2024 and the $50 million guaranteed first-lien senior secured revolving credit facility due 2023 issued by Synamedia Americas Holdings, Inc. Moody’s also revised the outlook to stable from positive.

“The upgrade of Synamedia's CFR to B3 reflects (1) the significant improvement in the company's underlying EBITDA (as reported by the company before separately disclosed items) in fiscal year ending June 27, (FY) 2021 supported by the realization of cost savings through the business optimization program, (2) the rapid de-leveraging of the company to 3.5x in FY 2021 and Moody's expectation that Synamedia will be able to maintain this ratio at or below 4x over the next two years, and (3) its adequate liquidity position supported by its cash balance and full availability under its RCF,” the agency said in a press release.

The revised outlook incorporates an expectation that Synamedia's structural decline in broadcast technologies revenues will be more than offset by growth in media cloud services and video network and that the company will generate positive free cash flow to maintain an adequate liquidity position, Moody’s said.

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