S&P trims Rand Parent loans, notes

S&P said it lowered its ratings for Rand Parent LLC’s senior secured loans and notes to BB- from BB. The agency also revised the recovery rating to 3 (60%) from 2 (70%).

The downgrade considers Rand’s new $150 million accounts receivable securitization facility as an additional source of liquidity to fund future capital needs, including aircraft pre-delivery deposit payments, the agency said.

“The new facility does not materially impact our view on credit metrics. We forecast funds from operations (FFO) to debt in the 15%-20% range over the next few years, with leverage remaining below 5x,” S&P said in a press release.

The outlook is stable.

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