Moody's upgrades Academy

Moody's Investors Service said it boosted Academy, Ltd.'s ratings, including the corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD and the ratings on the senior secured term loan and notes to Ba3 from B2. The speculative-grade liquidity rating remains SGL-1. The agency changed the outlook to stable from positive.

“The CFR and PDR upgrades reflect Academy's continued outperformance in Q1 2021 relative to expectations and Moody's projections for solid credit metrics even in a scenario of normalized demand in the sporting goods category. The upgrades also reflect governance considerations, including the reduction in ownership by Academy's former private equity sponsor KKR to 31.7% of outstanding stock and Moody's expectation for balanced financial strategies,” Moody’s said in a press release.

The two-notch hike of the secured notes and term loan ratings reflects expectations for lower baseline revolver borrowings in Moody's loss given default model because of the CFR upgrade, 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.