Moody’s might drop ALG

Moody's Investors Service said it placed ALG BV's B2 corporate family rating and B2-PD probability of default rating on review for downgrade.

The existing ratings on ALG's bank credit facilities remain unchanged.

Moody’s said the review for downgrade was prompted by ALG's announcement that KKR and an affiliate of KSL Capital Partners agreed to purchase the operating subsidiaries of Apple Leisure Group from Bain Capital Private Equity.

Financial terms of the transaction have not been disclosed.

The operating subsidiaries to be acquired include all the current operating subsidiaries of ALG B.V.'s restricted credit group, which include – AMResorts (hotel management and marketing services), Amstar (destination management company in Mexico and the Dominican Republic), Apple Vacations, Travel Impressions, and Cheap Caribbean. It also includes the unrestricted subsidiary of ALG's parent, which is currently excluded from the Restricted Group – the Unlimited Vacation Club.

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