S&P pares Red Planet

S&P said it trimmed Red Planet Intermediate LLC’s issuer rating to B- from B and the ratings on the loans borrowed by Red Planet Borrower LLC to B- from B. The 3 recovery ratings (50%) on the $1.4 billion term loan due 2028 and $150 million revolver due 2026 are unchanged.

Red Planet is the new parent of the newly merged Liftoff Mobile Inc. and Vungle Inc.

“The downgrade reflects our expectation that Red Planet's leverage and cash-flow metrics will be significantly weaker than we anticipated when Liftoff and Vungle first merged. Slowing macroeconomic growth, mobile privacy headwinds, and integration challenges are weighing on Red Planet's revenue. We now expect revenue to decline 4% in 2022, down significantly from our previous expectation of 18% growth,” S&P said in a press release.

The outlook is negative.

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