Moody’s ups CPI Card, rates notes B3

Moody’s Investors Service said it upgraded CPI Card Group Inc.’s corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

Concurrently, Moody’s assigned a B3 to the new secured notes of CPI CG, Inc. with the CPI Card’s proposed refinancing. The agency also upgraded the speculative grade liquidity rating to SGL-2 from SGL-3.

The proceeds, a portion of a new unrated asset-based lending revolving credit facility and about $36 million of CPI’s balance sheet cash, will be used to repay the company’s super-senior first-lien term loan and first-lien term loan. The existing ratings on CPI CG’s debt instruments will be withdrawn upon full repayment.

The upgrade reflects CPI addressing the upcoming maturities that had weighed heavily on its credit profile, Moody’s said.

The outlook is stable.

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