Moody’s cuts Academy term loan

Moody's Investors Service said it downgraded Academy, Ltd.'s senior secured term loan rating to Caa1 from B3 and affirmed the company's B3 corporate family rating and B3-PD probability of default rating.

The outlook remains stable.

The downgrade of the term loan reflects its lower estimated recovery rate as a result of the recent asset-based revolver upsize, the agency said.

At the same time, the affirmation reflects a view that while leverage is likely to remain elevated, Academy's good liquidity provides it with flexibility to turn around its operating performance, Moody’s 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.