Moody’s upgrades Technicolor

Moody’s Investors Service said it upgraded Technicolor SA’s corporate family rating to Caa2 from Caa3 and the company’s probability of default rating to Caa2-PD/LD from Ca-PD.

Concurrently Moody’s affirmed the rating of Technicolor’s senior secured bank credit facilities at Ca and changed the outlook to stable from negative. Concurrently, Moody’s affirmed the Caa1 rating of the $119.8 million senior secured term loan raised by Technicolor USA, Inc. and the €349 million of senior secured notes sold by Tech 6. The agency said it assigned stable outlooks to these issuers.

The rating action reflects Technicolor’s finish of its financial restructuring plan, Moody’s said.

“Moody’s appended the company’s Caa2-PD PDR with the /LD (limited default) designation as the company’s debt-to-equity swap is viewed by Moody’s as a distressed exchange, which is an event of default under Moody’s definition of default. Moody’s will remove the /LD designation from the company’s PDR after three days,” the agency said in a press release.

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