Moody's rates Equiniti notes B3

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Equiniti Cleanco Ltd. and a provisional B3 rating to the proposed dual-tranche £440 million of senior secured fixed- and floating-notes due 2018 issued by Equiniti Bondco plc. The outlook is stable.

Proceeds will be used to repay bank debt.

The agency said the B2 corporate family rating primarily reflects Equiniti's high financial leverage and limited scale relative to Moody's rated universe of business and consumer service companies, partly offset by the agency's expectation that the company is likely to maintain its adequate cash position and generate comfortable levels of unencumbered future free cash flow.

Moody's expects the company's debt-to-EBITDA ratio will be around 6.2 times on a Moody's-adjusted basis for the financial year ending in December and pro forma the refinancing transaction.

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