Moody's lifts Catalina loan, notes

Moody's Investors Service said it affirmed Checkout Holding Corp.'s B2 corporate family rating and revised the rating on the first-lien credit facility of its wholly owned subsidiary, Catalina Marketing Corp., to Ba3 from B1.

Moody's also lifted the rating on Catalina's 11 5/8% subordinated notes to B3 from Caa1.

The outlook remains stable.

The upgrades reflect changes in the debt mix following the agency's review of the final deal structure for the company's refinancing, which was revised from the original proposal.

Moody's said it upgraded Catalina's the facility rating because compared to the original proposed refinancing, this debt comprises a smaller portion of the overall debt capital structure and benefits from a higher amount of contractually junior capital as the subordinated notes remain outstanding. The subordinated notes rating was upgraded to B3 from Caa1 because the company is utilizing cash to reduce the amount of contractually senior debt, the agency added.

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