Moody's rates Apollo Commercial notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Apollo Commercial Real Estate Finance, Inc.'s (ARI) planned senior secured notes. ARI's Ba3 corporate family rating, Ba2 senior secured term loan rating and negative outlook are unaffected by the decision to sell $400 million of senior secured notes.

“The Ba2 rating assigned to ARI's senior secured notes reflects its senior secured position in the company's capital hierarchy, and is at the same level as ARI's existing Ba2-rated senior secured term loan B. Moody's considers ARI's unsecured notes, which are subordinated to its proposed senior secured notes and term loan B, as a significant buffer to senior secured creditors in the event of default,” Moody’s said in a press release.

ARI intends to use the proceeds for general corporate purposes, including the temporary reduction of borrowings under the company's repurchase agreements.

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