Moody's ups Kenan

Moody's Investors Service said it upgraded Kenan Advantage Group, Inc.'s corporate family rating to B3 from Caa1, probability of default rating to B3-PD from Caa1-PD and senior unsecured to Caa2 from Caa3 and changed the outlook to stable from under review.

The B3 rating on the senior secured credit facilities is not affected as the rating is expected to be withdrawn upon the refinancing’s close. Also, the B2 rating on the senior secured credit facilities due 2026 was unaffected, Moody’s said.

This action concludes the review for upgrade started March 3 after Kenan announced it would seek an extension on its first-lien senior secured credit facilities to 2026 from 2022, consisting of a $1 billion senior secured term loan and an upsized senior secured revolving credit facility of $150 million, the agency said.

“The upgrade of the ratings reflects that the refinancing addresses refinancing risk and liquidity by putting in place a larger revolving credit facility, which weighed heavily on the ratings. Furthermore, the action considers the company's improved operating profile, based on stronger cash flow generation, stemming from cost reductions, improved efficiency, and better than expected credit metrics,” Moody’s said in a press release.

The stable outlook considers an expectation Kenan will grow its revenues as demand for fuel increases in 2021, and the company's high-growth logistics business continues in its upward trajectory, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.