Moody’s ups Doncasters loans

Moody’s Investors Service said it raised the ratings to Caa2 from Caa3 on the outstanding £218 million of sterling-equivalent guaranteed senior secured first-lien term loans due 2024 issued by Doncasters US Finance LLC and Doncasters US LLC.

Concurrently, the agency affirmed the Caa2 corporate family rating of Alloy Parent Ltd. (Doncasters) and upgraded the company's probability of default rating to Caa2-PD from Caa3-PD.

“The senior secured first lien term loans maturing in 2024 are rated Caa2, in line with the corporate family rating. The loans rank behind the company's ABL facility by virtue of priority security arrangements. The senior secured first lien term loans are borrowed by Doncasters US Finance LLC and Doncasters US LLC which are wholly-owned indirect subsidiaries of Alloy Parent Ltd. They are guaranteed by the company and material subsidiaries subject to a minimum guarantor coverage test. The senior secured first-lien term loans benefit from an all asset security package,” Moody’s said.

The agency said it also aligned the PDR and the senior secured first-lien term loans with the Caa2 CFR on the company's recent positive trading performance and end-market gradual recovery which will ultimately lead to a higher recovery rate.

The outlook is positive.

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