S&P downgrades Trilogy Energy

S&P said it lowered the long-term corporate credit rating on Trilogy Energy Corp. to B- from B.

The outlook is stable.

The agency also said it affirmed the B- rating on the company's senior unsecured debt and revised its recovery rating on the debt to 3 from 5.

This indicates 50% to 70% expected default recovery for senior unsecured debtholders under our default scenario.

The downgrade follows the revision to the company’s liquidity assessment profile, S&P said.

The company's liquidity profile has weakened to adequate from strong due to the reduced availability under its revolving credit facility, the agency explained.

As a result, the one-notch uplift for a strong liquidity profile no longer applies, S&P said.

Trilogy's successful efforts to cut costs and improve its operating efficiency have enabled it to strengthen its profitability metrics and maintain a stable financial risk profile despite persistent low oil and gas prices, the agency said.

Nevertheless, the reduced credit facility availability has weakened the company's liquidity sources below the level estimated necessary to support the previous strong liquidity assessment, S&P said.

S&P downgrades General Cable

S&P said it lowered the corporate credit rating on General Cable Corp. to B from B+.

The agency also said it lowered the rating on the company's senior unsecured notes to B- from B.

The 5 recovery rating is unchanged, indicating 10% to 30% expected default recovery.

S&P also said it lowered the rating on the company's subordinated debt to CCC+ from B-. The 6 recovery rating is unchanged, indicating 0 to 10% expected default recovery.

The outlook is stable.

The downgrades reflect a belief that General Cable's credit measures will remain more in line with a highly leveraged financial risk profile for at least the next 12 months due to lower metals prices in 2016, the agency said.

S&P said it expects General Cable's leverage to remain at slightly more than 6x for the rest of 2016 before decreasing to slightly more than 5.5x in 2017, which is more aligned with a highly leveraged financial risk profile and a B corporate credit rating.

S&P lowers Cablevision, CSC

S&P said it lowered the corporate credit rating on Cablevision Systems Corp. to B from BB- and removed all of the ratings from CreditWatch, where they were placed with negative implications in September 2015.

The agency also said it lowered the ratings on CSC Holdings LLC's existing unsecured debt to B- from BB and revised the recovery rating to 5 from 2.

The 5 recovery rating indicates 10% to 30% expected default recovery.

This brings the unsecured issue-level ratings in line with the ratings on the unsecured debt raised in October 2015 at Neptune Finco Corp., which is now merging with and into CSC Holdings, S&P said.

The agency also said it lowered the ratings on the company's unsecured subordinated debt to CCC+ from B. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

The outlook is stable.

Altice will use about $8.6 billion in proceeds from debt raised in October 2015, along with about $3.3 billion in equity and cash on the balance sheet, to fund the $10 billion equity purchase price and refinance credit facilities at CSC Holdings and Newsday, S&P said.

The downgrade follows the close of Altice's mostly debt-financed acquisition of CSC, pushing pro-forma leverage to about 7.5x from 4.2x for the 12 months ended March 31, the agency said.

Although the company could reduce leverage to less than 7x over the near term, the agency said it believes there is uncertainty regarding the achievement of planned cost savings and the longer-term impact that cost cutting could have on the company's market share.

Moody’s ups Albemarle view to positive

Moody's Investors Service said it affirmed the ratings of Albemarle Corp. at Baa3 following the announcement that it would sell its Chemetall metal surface treatment business to BASF for $3.2 billion and use a portion of the proceeds for debt reduction.

Ratings affirmed include the P-3 commercial paper rating and Baa3 senior notes and eurobonds. The transaction is expected to close by year end 2016.

The outlook was changed to positive from stable.

Moody’s said the positive outlook reflects the strong business positions, margins and outlook of the remaining bromine and lithium-based portfolio, particularly with respect to the unique positioning in lithium resources, market position, product diversity and long term outlook.

The ratings and the positive outlook also consider the agency’s anticipation that Albemarle will engage in M&A activity that is small-to-modest in scale; it but does not anticipate further transformational acquisitions.

S&P lifts DuPont to positive

S&P said it revised the outlook on DuPont Fabros Technology Inc. to positive from stable.

The agency also said it affirmed the BB- corporate credit rating and BB senior unsecured rating on the company's senior unsecured notes.

The recovery rating is 2, indicating 70% to 90% expected default recovery.

DuPont Fabros Technology recently announced plans to redeem the remaining 7 5/8% series B preferred stock with proceeds from the sale of its NJ1 data center, S&P said.

The company has demonstrated strong operating metrics, good leasing activity and broadening net operating income as it delivers and stabilizes development projects, the agency said.

The outlook revision reflects the company's recent de-leveraging of its balance sheet, S&P said, as well as good operating performance and progress signing new leases.

S&P upgrades Extreme Results

S&P said it raised the corporate credit rating on Extreme Reach Inc. to B from B-.

The agency also said it raised the rating on the company's first-lien term loan and revolving facility to BB- from B+.

The 1 recovery rating is unchanged, indicating 90% to 100% expected default recovery.

S&P also said it raised the rating on Extreme Reach's second-lien term loan to B- from CCC and revised the recovery rating to 5 from 6.

The 5 recovery rating indicates 10% to 30% expected default recovery.

The upgrade reflects a view of the company's increased voluntary first-lien paydowns over the past few quarters, which have improved the recovery score on the second-lien term loan, the agency said.

The outlook is stable.

The ratings reflect a view that the proposed amendments to Extreme Reach's credit agreement have significantly lowered the risk that the company could violate its leverage covenant within the next 12- to 18-months, S&P said.

The stable outlook considers an expectation that the company will maintain adequate liquidity with EBITDA covenant cushions of more than 15% over the next 12- to 18-months, the agency said.

S&P puts Neustar on watch

S&P said it placed the BB- corporate credit rating on Neustar Inc. on CreditWatch with negative implications.

The CreditWatch listing follows news that the company plans to separate into two companies through a tax-free spin-off transaction, which is expected to close within 12 months, S&P said.

The agency said it will continue to monitor developments related to the proposed transaction, including required approvals.

S&P also said it will meet with Neustar’s management team to review and assess its business strategy following the spin-off, terms of the separation, subsequent capital structure and ongoing financial policy.

Moody’s rates Arbor Pharmaceuticals loan B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Arbor Pharmaceuticals, LLC.

The agency also assigned a B1 rating to the proposed $575 million senior secured bank credit facility.

The outlook is stable.

Proceeds from the term loan, along with cash on hand, will be used to fund the pending acquisition of XenoPort, Inc. for about $467 million.

Moody’s aid the B1 corporate family rating reflects Arbor's small size, both on an absolute basis and relative to larger players in the pharmaceutical industry – with estimated 2015 pro forma revenue of less than $500 million after the acquisition of Xenoport.

The rating is also constrained by the company's revenue concentration in certain legacy products, which the agency anticipates will face increasing generic competition over the next several years.

The rating also reflects the risk that Arbor will not be able to successfully execute on its strategy of growing volumes in its branded portfolio of drugs and launching new drugs in its generic business. Historically, the vast majority of Arbor's growth has been through acquisitions and price increases on its legacy drugs, Moody’s said.

Moody’s rates Broadridge notes Baa1

Moody's Investors Service said it assigned a Baa1 senior unsecured rating to Broadridge Financial Solutions, Inc.'s proposed notes offering.

The outlook is stable.

Net proceeds are expected to be used to help fund the acquisition of the North American Customer Communications business of DST Systems, Inc. for $410 million in cash. Net proceeds will also be used to repay a portion of the debt outstanding under Broadridge's senior credit facility and for general corporate purposes, including share repurchases.

Moody’s said the Baa1 rating is supported by Broadridge's steady, recurring fee-based revenue and its leading position in proxy and other investor communication services. Broadridge maintains a business model supported by the SEC's proxy filing requirements, long-term customer contracts with many leading banks and broker dealers, and the continuing growth of equity positions.

Fitch: Broadridge notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Broadridge Financial Solutions, Inc.’s senior unsecured notes.

The proceeds will be used to repay outstanding debt under its senior credit facility, finance acquisitions and general corporate purposes, Fitch said.

Broadridge’s issuer default rating is BBB+ and the outlook is stable.

The company benefits from contractual sale agreements and a business model that demonstrates a 90% recurring revenue stream and a 98% client revenue-retention rate, Fitch explained.

The agency said it believes the company can sustain its competitive position given its long-term client relationships, integral service provided to meet regulatory compliance and high switching cost associated with changing vendors.

S&P: Broadridge notes BBB+

S&P said it assigned a BBB+ rating to Broadridge Financial Solutions Inc.'s proposed unsecured notes.

The BBB+ corporate credit rating and stable outlook on the company are unchanged, S&P said.

The proceeds will be used to repay the balance on its revolving credit facility and for general corporate purposes, the agency said.

The ratings reflect the company's good market position, high recurring revenue and good track record of operating performance, as well as leverage of 1x as of March 31, S&P explained.

Moody’s rates MWI Holdings loans B2, Caa2

Moody’s Investors Service said it assigned first-time ratings to MWI Holdings, Inc., including a B3 corporate family rating and B3-PD probability of default rating.

The agency said it assigned a B2 (LGD 3) rating to the company’s proposed first-lien senior secured bank credit facilities, comprising a $40 million revolving credit facility and $325 million term loan.

Moody’s also said it assigned a Caa2 (LGD 5) rating to its proposed $105 million second-lien term loan.

The outlook is stable.

The proceeds will be used primarily to refinance existing debt of about $390 million following the company’s February 2016 acquisition of USA Fastener Group, Inc., the agency said, and to increase the cash balance by about $20 million.

The ratings reflect MWI’s product concentration and modest scale in the highly competitive market for specialized springs and fasteners, Moody’s said.

The agency said it expects that MWI will operate with substantial financial leverage and relatively weak interest coverage for some time.

The ratings also consider the company’s exposure to cyclical end-markets, which continue to face significant headwinds, Moody’s added.

Moody’s gives B2 to Mediware, loans

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Mediware Information Systems, Inc.

The agency also assigned B2 ratings to the company's proposed $330 million first-lien term loan and revolver.

The outlook is stable.

Proceeds from the debt issuance will be used to refinance existing debt as well as to fund a distribution to private equity owner Thoma Bravo.

Moody’s said the B2 corporate family rating reflects Mediware's high leverage levels post-closing, small scale and acquisition appetite, offset to some degree by the company's demonstrated cash generating capabilities resulting from a stable and predictable base of software maintenance and subscription revenues.

Pro forma debt to EBITDA is about 5.1 times (including adjustments for certain one-time costs) based on the LTM period ended on April 30, 2016, but is expected to decline to under 5 times over the next 12 to 18 months, driven by EBITDA growth, debt repayment.

S&P affirms Cast & Crew after add-on

S&P said it affirmed the B corporate credit rating on Cast & Crew Payroll, LLC.

The outlook is stable.

The agency also said it affirmed the B+ rating on the company's first-lien revolving credit facility due in 2020 and $350 million first-lien term loan due in 2022, which was upsized from $270 million.

The recovery rating on these first-lien facilities remains at 2, indicating 70% to 90% expected default recovery.

S&P also said it affirmed the CCC+ rating on the company's $95 million second-lien term loan due 2023.

The recovery rating remains at 6, indicating 0 to 10% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company's proposed $50 million second-lien notes due 2024.

The ratings reflect Cast & Crew's highly leveraged financial condition, financial sponsor ownership and narrow business focus on providing tech-enabled payroll processing services for the entertainment production industry, the agency said.

Cast & Crew is acquiring CAPS LLC, which will gain the company entry to an adjacent vertical serving the production of commercials and live events, S&P explained.

The agency said it also factored into the rating the company's good market position, diversified client base and high client retention rates, the agency said.

Moody’s: Dynacast unaffected on add-on

Moody's Investors Service said Dynacast International LLC's $45 million add-on term loan does not impact its ratings, including the B2 corporate family rating, B1 first-lien revolving credit facility and term loan or Caa1 second-lien term loan.

The outlook remains stable.

Moody’s affirms Internet Brands

Moody's Investors Service said it affirmed Internet Brands, Inc.'s B2 corporate family rating, B2-PD probability of default rating, B1 rating on the first-lien credit facilities and Caa1 rating on the second-lien credit facility.

The outlook is stable.

The actions follow the company's plans to upsize the existing $675 million outstanding first-lien term loan by $175 million primarily to fund a dividend to equity holders and obtain an additional $150 million delayed-draw first-lien term loan, which is intended to finance potential acquisitions over the coming six to 12 months.

S&P affirms Micro after add-on

S&P said it affirmed the B corporate credit rating on Micro Holding Corp.

The agency also said it affirmed the B rating on the company's senior secured first-lien credit facility 2021, including the proposed $175 million incremental term loan and $150 million delayed draw term loan both due 2021.

The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

S&P also said it affirmed the CCC+ rating on the company's $170 million second-lien term loan due 2022. The 6 recovery rating is unchanged, indicating 0 to 10% expected default recovery.

The outlook is stable.

The business risk profile was revised to fair from weak, reflecting the company's increasing mix of business from software as a service (SaaS) offerings, which consist of software and data services for the auto sector, S&P said, and website design, hosting and marketing services for the health and legal sectors.

The SaaS business generates recurring, subscription-based revenue, which is less volatile than online advertising revenue, the agency said.

The company is expected to continue expanding its market share with small- and mid-sized businesses in its health and legal sectors, S&P said, and increase its share of revenue from the less-volatile SaaS business.

Moody’s gives U.S. Security loans B2

Moody's Investors Service said it affirmed U.S. Security Associates Holdings, Inc.'s B3 corporate family rating and B3-PD probability of default rating, and assigned B2 instrument ratings to the company's proposed $450 million senior secured first-lien term loan and $75 million senior secured first-lien revolver.

The outlook is stable.

Proceeds from the proposed transaction will be used to refinance the company's existing credit facilities, pay related costs associated with the transaction and put cash on the balance sheet.

The existing facilities include about $402 million outstanding on the term loan and $36 million across the company's two revolving credit facilities (about $5 million of outstandings under an $11 million revolver expiring in July 2016 and the remainder under a $64 million revolver expiring in April 2017).

The transaction will be essentially leverage neutral and will modestly improve the company's near-term liquidity, as it will address the upcoming maturities on U.S. Security's revolving credit facilities, Moody’s said.

However, the agency noted that the proposed term loan and revolver are expected to contain a springing maturity inside of the July 2018 maturity of the company's $160 million senior unsecured notes (unrated) if $50 million or more remains outstanding on the notes 91 days prior to maturity. As a result, the company will need to revisit its long term capital structure over the next 12 to 18 months.

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