Moody’s downgrades Audatex, rates notes B1

Moody's Investors Service said it downgraded the corporate family rating of Audatex Holdings, LLC and the existing senior unsecured notes rating of Audatex North America, Inc. to B1 from Ba3.

The agency also downgraded Audatex's probability of default rating to Ba3-PD from Ba2-PD and affirmed the company's SGL-1 liquidity rating.

The outlook remains stable.

The downgrade comes upon the announcement that Audatex will be issuing $850 million of senior unsecured notes, to which Moody’s also assigned a B1 rating.

Proceeds from the new notes will be used to pay down a $200 million bridge facility that was used for the acquisition of DMEautomotive and to purchase, for $594 million, the 50% share of Service Repair Solutions that Audatex does not already own, as well as for fees and expenses.

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