Moody's assigns Oxford Finance notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Oxford Finance LLC's planned $400 million of senior unsecured notes due 2027.

“Moody's said the Ba3 rating assigned to Oxford's proposed new senior unsecured notes is consistent with the company's existing senior unsecured rating. The Ba3 senior unsecured rating is one notch below Oxford's Ba2 corporate family rating (CFR) and is based on the loss given default model-implied rating of Ba3. The one notch differential with the CFR reflects the substantial amount of secured debt incurred by Oxford that is given priority ranking in the firm's capital structure relative to the unsecured notes,” the agency said in a press release.

Oxford will use the proceeds to redeem its Ba3-rated $300 million of senior unsecured notes due 2022, as well as a paydown of $92 million of outstanding senior secured debt.

The outlook is stable.

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