Moody’s lifts Digital River loans to Ba3, B3

Moody's Investors Service said it affirmed Digital River, Inc.'s B2 corporate family rating and B2-PD probability of default rating.

At the same time, the agency upgraded the $10 million revolver and $255 million first-lien term loan ratings to Ba3 from B1, and the $80 second-lien term loan to B3 from Caa1.

The outlook is stable.

Using a combination of proceeds from business divestitures and cash from the balance sheet, Moody's expects Digital River to pay down about $143 million of its first-lien term loan by year-end. Following this reduction, Moody's expects Digital River's adjusted debt to EBITDA to improve to about 4 times by the end of 2016.

Moody’s said the upgrades reflect the significantly lower proportion of first-lien debt in the capital structure following the first-lien term loan repayments.

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