Fitch downgrades Toi Toi & Dixi

Fitch Ratings said it downgraded the long-term issuer default rating for TTD Holding III GmbH (TTD; also known as Toi Toi and Dixi) to B from B+. The agency also trimmed TTD Holding IV GmbH's €660 million and €510 million, the latter including the recently launched €100 million add-on tranche, senior secured term loans to B+ from BB-. The recovery rating remains RR3.

“The downgrade of the IDR follows TTD's €100 million add-on debt tranche to its €410 million term loan to fund a dividend payment to its shareholders. Additional debt delays deleveraging, and we now view leverage, debt service and cash flow metrics as being more commensurate with a B rating. The rating gives management flexibility to execute its growth strategy and/or accommodate additional shareholder distributions, which we would view as event risk,” Fitch said in a press release.

The outlook is stable.

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