Moody’s ups Sundyne first-lien ratings

Moody’s Investors Service said it raised the senior secured first-lien bank rating of Star US Bidco, LLC (Sundyne) to B2 from B3 and revised the company’s outlook to stable from positive.

The upgrade reflects the manageable leverage through the first-lien debt, Moody’s said.

“The change in outlook to stable from positive reflects the material increase in financial leverage and interest expense that will result from the proposed shareholder dividend. The dividend will be funded with new second-lien term debt and cash, reflecting a shareholder friendly financial policy – a governance consideration,” the agency said in a press release.

Moody’s affirmed Sundyne’s B3 corporate family rating and B3-PD probability of default rating.

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