S&P hikes Atlas Midco

S&P said it raised Atlas Midco Inc.’s issuer rating to CCC+ from D. The agency concurrently assigned a B rating to Atlas Midco subsidiary Alvaria Holdco's first-lien, first-out term loan, a CCC+ rating to the company's first-lien, second-out term loan, a CCC+ rating to the company's first-lien, second-out revolving credit facility, a CCC- rating to the company's first-lien, third-out term loan, and a CCC- rating to the company's first-lien, fourth-out term loan.

The rating actions follow Atlas Midco completing its distressed exchange, which had 100% consent from lenders, S&P said.

“While near-term liquidity has improved, we still view Atlas Midco's high leverage as a risk. Following its restructuring, Atlas Midco will see improved financial flexibility in the form of $78 million of new money, pay-in-kind (PIK) interest for the next two years, and covenant relief until 2026,” the agency said in a statement.

The outlook is negative.

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