Moody's rates Premium Credit notes B2

Moody's Investors Service said it assigned a B2 corporate family rating to Mizzen Midco Ltd., operating under the name of Premium Credit Ltd., and a provisional B2 rating to the proposed £200 million long-term senior notes to be issued by Mizzen Bondco Ltd. The outlook is stable.

The company plans to use the proceeds to repay an existing mezzanine finance facility, to repay all of its outstanding preferred equity certificates and to pay a dividend to its shareholders.

The agency said the B2 corporate family rating positively reflects Premium Credit's leading franchise positioning in the United Kingdom and Irish premium finance markets, stable cash flows and historical profitability, low levels of credit losses and low concentration risk in terms of end-customers.

The rating is constrained by the monoline business model, shareholders' aggressive financial policies, concentrated debt maturity profile, concentration in intermediaries through whom the company provides the loans and collateral available as security for the senior notes, Moody's said. The rating also reflects the projected increase in leverage and decrease in interest coverage as a result of the proposed transaction.

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