S&P lowers Dixie Acquisition

Standard & Poor's said it lowered the corporate credit rating on FR Dixie Acquisition Corp. to B from B+.

The outlook is stable.

The agency also said it lowered the ratings on the company's $40 million revolving credit facility due 2018 and $280 million term loan B due 2020 to B from B+.

The recovery rating on the credit facility remains at 3, indicating 50% to 70% expected default recovery.

The downgrade reflects a view that low oil prices have hurt Dixie's operating performance relative to previous expectations, S&P said.

While the agency said it previously expected debt-to-EBITDA of 4x to 4.5x, Dixie's adjusted debt leverage will be 5x or higher this year.

S&P upgrades Sagittarius

Standard & Poor’s said it raised the corporate credit rating on Sagittarius Restaurants LLC to B+ from B.

The agency also said it raised the rating on the company’s senior credit facilities to B+ from B. The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrades reflect the meaningful debt reduction as a result of the merger with LAC, publicly traded blank-check company.

Sagittarius plans to amend its first-lien term loan to increase borrowings by $25.1 million, S&P said.

The proceeds from the term loan upsize, revolver borrowings and proceeds from the equity infusion will be used repay $111 million of payment-in-kind senior subordinated notes, acquire $29 million of existing equity in Sagittarius’ parent and pay related transaction fees, S&P said.

Moody’s raises Sagittarius, loan

Moody's Investors Service said it upgraded Sagittarius Restaurants LLC's corporate family rating to B2 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

In a related action, the agency upgraded the rating on the company's senior secured first-lien bank facility (including a proposed incremental term loan) to B1 from B2.

The outlook is stable.

Proceeds from the $25.1 million proposed add-on to the term loan, along with a $10 million draw on the revolver and $91 million of new common equity from a syndicate led by, Larry Levy, will be used to redeem 100% of the company's senior subordinated PIK notes and to pay related fees and expenses (step one of a planned business combination).

Upon completion of step one, and following an expected equity repurchase by the new sponsor, Larry Levy will hold a 46% stake in Sagittarius and Levy will become board chairman.

S&P upgrades Spirit Realty

Standard & Poor's said it raised the corporate credit on Spirit Realty Capital Inc. to BB from BB-.

The outlook is stable.

The upgrade primarily reflects the company's successful de-leveraging efforts in recent years coupled with reduced exposure to Spirit's largest tenant, Shopko, S&P said.

The agency said it expects Spirit will continue its aggressive investment strategy, but will finance this growth in a leverage-friendly manner, which could result in further improvement to the balance sheet.

Moody’s ups Wabash CFR, assigns loan Ba3

Moody's Investors Service said it upgraded the ratings of Wabash National Corp., including the corporate family rating to Ba3 from B1.

The agency also assigned a Ba3 rating to the new $192.8 million senior secured term facility due 2022 that the company is arranging.

The outlook remains stable.

Proceeds will be used to repay in full the outstanding balance of the company's existing senior secured facility, which matures in 2019.

Wabash’s speculative grade liquidity rating was upgraded to SGL-1 from SGL-2.

Moody’s said the Ba3 rating takes into account the company's leading market position in the truck trailer manufacturing market, its ability to generate strong cash flows and the company's prudent financial management which has helped to strengthen its ability to contend with the severe cyclicality in the demand for trailers.

Moody’s changes Seadrill view to negative

Moody's Investors Service said it affirmed Seadrill Partners LLC's (SDLP) corporate family rating at Ba3, probability of default rating at Ba3-PD, the Ba3 rating on the $2.9 billion senior secured term loan due 2021, borrowed by Seadrill Operating LP and Seadrill Partners Finco LLC, subsidiaries of SDLP and the Baa3 rating on the $100 million first-out secured revolving credit facility due 2019, borrowed by Seadrill Operating, Seadrill Partners Finco and Seadrill Capricorn Holdings LLC, also a subsidiary of SDLP.

The outlooks on all ratings were revised to negative from stable.

"We revised Seadrill Partners LLC's outlook to negative to reflect increased risk from the cross default with its parent, Seadrill Ltd. (SDRL, unrated), which we expect is at risk of breaching covenants this year and which has a substantial funding requirement of over $3 billion next year if it is unable to significantly delay deliveries of its newbuild vessels currently under construction," Douglas Crawford, Moody’s vice president and lead analyst for Seadrill, said in a news release.

"We view SDRL's $11.6 billion contract backlog and industry leading, young fleet as favorable factors, but remain concerned that the weak offshore drilling environment increases the risk for Seadrill Ltd. to obtain financing for its extensive newbuild program or to reset its covenants."

S&P: Windstream to negative

Standard & Poor’s said it revised the outlook on Windstream Holdings Inc. to negative from stable and affirmed the company’s BB- corporate credit rating.

The B rating on the company’s senior unsecured debt also remains on CreditWatch with positive implications, where it was placed in July 2014 because of an expectation for improved recovery prospects due to a significant reduction in secured debt following the planned REIT spin-off, S&P said.

The outlook revision is based on weaker-than-expected EBITDA performance and leverage that is likely to be higher than the original base-case forecast, the agency said.

Following the company’s 2014 results, S&P said it expects Windstream’s reported EBITDA margin will be in the 22% to 23% range over the next couple of years.

S&P rates CenturyLink notes BB

Standard & Poor’s said it assigned a BB rating and 4 recovery rating to CenturyLink Inc.’s proposed senior notes due 2025.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The proceeds will be used to repay amounts outstanding under its revolving credit facility, S&P said.

The BB corporate credit rating and stable outlook are unchanged.

The transaction is unlikely to affect the company’s key credit measures, including leverage, which was about 3.7x as of Dec. 31, the agency said.

The ratings also consider an expectation that leverage will remain in the high-3x range over the next couple of years, S&P said.

Moody’s assigns CenturyLink notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to CenturyLink, Inc.'s proposed offering of series X notes due 2025.

Proceeds will be used to repay a portion of the debt outstanding under CenturyLink's revolving credit facility, a portion of which the company incurred to repay the $350 million series M notes that matured on Feb. 15, 2015.

The company's other ratings and negative outlook remain unchanged.

Fitch: CenturyLink notes BB+

Fitch Ratings said it assigned a BB+ rating to CenturyLink, Inc.’s private offering of up to $500 million of 10-year senior unsecured notes.

The proceeds will be used to repay indebtedness on its revolving credit facility, a portion of which was incurred to repay $350 million of debt that matured Feb. 15, Fitch said.

CenturyLink’s issuer default rating is BB+ and the outlook is stable.

The ratings are based on the expectation that CenturyLink will demonstrate steady improvement in its revenue profile over the next couple of years given that rates of decline have moderated to nominal levels and could be flat in 2015, the agency said.

Its near-term consolidated free cash flows have strengthened and are expected to be relatively healthy in 2015, Fitch said, and its liquidity is expected to remain relatively strong.

S&P rates Discovery notes BBB

Standard & Poor’s said it assigned a BBB rating to Discovery Communications LLC’s proposed euro-denominated senior unsecured notes.

Discovery’s parent company, Discovery Communications Inc., provides an unconditional guarantee for the notes, as it does for the company’s other public debt.

Discovery will use the issuance proceeds for general corporate purposes, which include repaying $850 million 3.7% senior unsecured notes due June 2015.

The BBB corporate credit rating and stable rating outlook on Discovery are unchanged.

Discovery’s business risk profile is considered satisfactory, S&P said.

The ratings also consider the company’s portfolio of key domestic and international cable networks, as well as its strong EBITDA margins compared with peers due to its focus on nonfiction content, the agency said.

These inputs result in lower programming costs and predictable revenue stream with about 50% of revenues coming from affiliate agreements with video-service providers, S&P said.

Moody’s gives Discovery bonds Baa2

Moody's Investors Service said it assigned a Baa2 rating to Discovery Communications, LLC's proposed issuance of roughly €600 million (about $640 million) senior unsecured euro-denominated bonds.

Proceeds will be used for general corporate purposes, including funding a portion of the repayment of the company’s $850 million 3.7% senior unsecured notes due this year.

The new notes will rank equally with Discovery’s existing senior unsecured notes and will be fully and unconditionally guaranteed by Discovery’s indirect parent, Discovery Communications, Inc.

Fitch: Discovery notes BBB

Fitch Ratings said it assigned a BBB rating to Discovery Communications, LLC’s proposed issuance of €600 million senior unsecured notes due 2027.

The outlook is stable.

The company has an issuer default rating of BBB, senior unsecured bank facility rating of BBB and senior unsecured notes rating of BBB.

A portion of the proceeds from the offering, in conjunction with proceeds from the February issuance of $300 million of senior unsecured notes due 2025, are expected to be used to fund the redemption of $850 million of 3.7% senior notes due on March 31, Fitch said.

The notes will be guaranteed on a senior unsecured basis by Discovery Communications, Inc.

The company’s strong portfolio of cable networks supports the ratings, the agency said.

Recent acquisition and investments, including the incremental investments in international markets, are in line with expectations and the company’s strategy to grow and improve the performance of international operations, Fitch said.

Discovery’s next scheduled maturity is not until 2019 when $500 million of senior unsecured notes and the revolver are scheduled to mature, the agency added.

S&P rates HC Group loan B, notes CCC+

Standard & Poor’s said it assigned a B corporate credit rating to HC Group Holdings III Inc., doing business as Walgreens Infusion Services.

The agency also said it assigned a B rating and 3 recovery rating to the company’s proposed first-lien senior secured credit facility, which consists of an $80 million revolver and $415 million term loan.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company’s $150 million second-lien floating rate notes, indicating 0 to 10% expected default recovery.

The outlook is stable.

The ratings reflect the company’s weak business risk profile and highly leveraged financial risk profile, the agency said.

The company’s business risk is characterized by its narrow business focus on home-based infusion services, thin margins and potential reimbursement pressure from third-party payors, S&P said.

The business risk also incorporates the company’s leading national market position and a diverse mix of payors and therapies, the agency said.

S&P rates Ineos loans BB-

Standard & Poor’s said it assigned a BB- rating to the proposed €850 million and $625 million term loan B facilities due 2022 to be issued by Ineos US Finance LLC and Ineos Finance plc, wholly owned subsidiaries of Ineos Group Holdings SA.

The agency also said it assigned a recovery rating of 2 to the proposed term loans, indicating 70% to 80% expected default recovery.

The agency also said it affirmed the rating of BB- and recovery rating of 2 on the existing senior secured debt issued by Ineos Finance and Ineos US Finance.

S&P also said it affirmed the rating of B- and recovery rating of 6 on the senior unsecured notes issued by Ineos Group Holdings.

The proceeds will be used to repay in full the existing euro floating- and dollar fixed-rate senior secured notes due 2019.

S&P rates United Rentals notes BB+, BB-

Standard & Poor’s said it assigned a BB+ rating with a recovery rating of 1 to the proposed $1 billion senior secured notes due 2023 and a BB- rating with a recovery rating of 4 to the proposed $800 million senior unsecured notes due 2025 to be issued by United Rentals (North America) Inc., a subsidiary of United Rentals Inc.

United Rentals is the guarantor of the notes.

The rating on the proposed senior secured notes is two notches above the group’s corporate credit ratings.

The rating on the senior unsecured notes is the same as the group’s BB- corporate credit ratings.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The 4 recovery rating on the proposed notes indicates 30% to 50% expected default recovery.

The proceeds from the new notes will be used to refinance existing debt, reduce drawings on its $2.3 billion asset-based revolving credit facility and pay call premiums, fees and expenses.

The issue-level ratings and recovery ratings on the company’s existing debt are unchanged.

The outlook is stable.

Moody’s gives United Rentals notes Ba1, B1

Moody's Investors Service said it rated United Rentals (North America), Inc.'s proposed new senior secured notes at Ba1 and senior unsecured notes at B1.

Concurrently, the agency affirmed the Ba3 corporate family rating, Ba3-PD probability of default rating, SGL-2 speculative grade liquidity rating, the ratings on all existing rated debt and maintained the stable outlook.

Proceeds from the transaction, along with balance sheet cash and revolver borrowings, are expected to refinance the senior secured notes due 2018, senior subordinated notes due 2020 and pay related fees and expenses. The ratings on these instruments will be withdrawn upon their refinancing.

S&P rates ViaWest, Shaw Data loans B+

Standard & Poor’s said it affirmed the B+ corporate credit rating on ViaWest Inc. and assigned a B+ corporate credit rating on Shaw Data Centre LP.

The outlook is stable.

The agency also said it assigned a B+ rating and 3 recovery rating to ViaWest’s proposed $450 million senior secured credit facilities. ViaWest will issue the proposed $75 million revolving credit facility due 2020 and Shaw Data Centre will issue the $375 million term loan due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The company’s proposed refinancing will not affect key credit measures meaningfully, S&P said.

Although the agency said it expects leverage to decline modestly to the mid-4x range over the next few years because of EBITDA growth, S&P believes ongoing capital spending requirements will constrain the company’s ability to generate positive free operating cash flow in the near term.

Moody’s assigns ViaWest loans B2

Moody's Investors Service said it assigned B2 ratings to ViaWest, Inc.'s new $375 million term loan B and $75 million senior secured revolving credit facilities.

Additionally, the agency affirmed the company's B2 corporate family rating, revised its probability of default rating to B2-PD from B3-PD and maintained the stable outlook.

Because the catalyst for the rating action is a refinance that does not materially affect relationships of debt or interest expense with cash flow, Moody’s said the transaction has no ratings implications and the new debt instruments are rated at the same ratings levels as the instruments they will replace.

Moody’s could drop Endo

Moody's Investors Service said it placed the ratings of Endo Luxembourg Finance I Co. Sarl and its subsidiaries under review for downgrade, including the Ba3 corporate family rating, Ba3-PD probability of default rating, Baa3 senior secured rating and B1 senior unsecured rating.

The SGL-2 speculative grade liquidity rating was affirmed.

The review was prompted by Endo's unsolicited bid to acquire Salix Pharmaceuticals Ltd. for $175 per share in cash and stock. This represents an 11% premium relative to the deal reached on Feb. 22 between Salix and Valeant Pharmaceuticals International, Inc.

Despite a high equity component, Moody’s said the transaction would increase Endo's financial leverage.

The review also reflects limited cushion within Endo's current rating because of a recent increase in financial leverage to acquire Auxilium Pharmaceuticals for $2.6 billion, and because of high litigation costs over the next two years, the agency said.

S&P affirms Fullbeauty after add-on

Standard & Poor’s said it affirmed the B corporate credit rating on Fullbeauty Brands Inc.

The outlook is stable.

The company plans a $160 million add-on to its existing first-lien term loan due 2021 and a $20 million add-on to the existing second-lien term loan due 2021.

S&P also said it affirmed the B rating and 3 recovery rating on the company’s $160 million add-on to its existing first-lien term loan due 2021.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency said it affirmed the CCC+ rating and 6 recovery rating on the $20 million add-on to the existing second-lien term loan due 2021. The 6 recovery rating indicates 0 to 10% expected default recovery.

The ratings reflect an expectation that Fullbeauty will maintain its credit metrics at or close to current levels, S&P said.

Moody’s could raise InterXion

Moody's Investors Service said it placed the B1 foreign and domestic corporate family ratings of InterXion Holding NV, as well as its B2 senior secured rating and B1-PD probability of default ratings, on review for upgrade.

The rating action follows the announcement of InterXion's plans to merge with TelecityGroup plc (unrated) via a share exchange.

Moody’s said the review reflects InterXion's entry into a definitive all-share merger agreement with TelecityGroup announced on March 9. The transaction is expected to close in the second half of 2015 subject to both InterXion's and TelecityGroup's shareholder approvals, as well as all relevant regulatory and antitrust consents.

S&P: J.M. Smucker notes BBB

Standard & Poor’s said it assigned BBB ratings to the J.M. Smucker Co.’s $3.65 billion senior unsecured notes.

The actual tranche amounts and maturity dates will be finalized at the close of the transaction.

The proceeds will be used to fund the Big Heart Pet Brands acquisition, refinance the company’s private placement notes and pay fees and expenses.

The company has a BBB corporate credit rating.

The ratings reflect the company’s leading market shares in its categories and greater scale and diversity with the Big Heart Pet Brands acquisition, S&P said.

The company remains smaller than many of its packaged-food peers, such as Nestle SA and Mars Inc., the agency said.

The ratings also consider that Smucker’s debt will substantially increase following the acquisition, but the company is expected to modestly de-leverage during the next two years, S&P said.

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