Moody's cuts Kantar's secured ratings

Moody's Investors Service said it lowered to B2 from B1 the ratings for the $400 million senior secured revolving credit facility due 2026, the €950 million and the $350 million senior secured term loans due 2026 issued by Kantar Global Holdings Sarl’s subsidiaries Summer (BC) Bidco B LLC and Summer (BC) Holdco B Sarl, and also for the €1 billion of guaranteed senior secured notes due 2026 issued by Summer (BC) Holdco B.

Concurrently, Moody’s affirmed Kantar corporate family rating at B2 and the B2-PD probability of default rating at Kantar Group Holdings Sarl. The agency also affirmed the Caa1 rating on the €475 million of guaranteed senior unsecured notes due 2027 issued by Summer (BC) Holdco A.

The rating action follows Kantar’s announcement of funding its acquisition of Millennium Park Holdco, Inc. (Numerator) with $900 million in add-on senior secured debt with the remaining $500 million via a combination of cash and equity, the agency said.

The downgrade of the senior secured debt ratings reflects that the acquisition will be funded via of $900 million of added senior secured debt leading while the company's unsecured notes now represent a small cushion in percentage of total debt, Moody’s noted.

"Our decision to affirm the CFR at B2 is driven by Kantar's better than expected operating performance in 2020 supported by the company's cost savings actions, working capital management and the completion of the sale of its Health division in 2021 which generated $375 million in cash proceeds. While majority debt funded, Numerator's acquisition is strategically positive as it will make Kantar a global panel category leader," said Gunjan Dixit, a Moody's vice president, senior credit officer and lead analyst for Kantar, in a press release.

The outlook is negative.

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