Moody's upgrades STG-Fairway

Moody's Investors Service said it upgraded STG-Fairway Acquisitions, Inc.'s corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

Moody's also said it upgraded the ratings on the company's senior secured first-lien credit facility to B2 from B3, along with the senior secured second-lien term loan rating to Caa2 from Caa3.

The outlook is stable.

The upgrades reflect ongoing growth in profitability and free cash flow, which is improving credit metrics and liquidity, the agency said.

The strong topline and earnings growth in 2018, sequential improvements in customer attrition and conversion rates and expansion of new products are driving market share gains, Moody's said.

The ratings also consider the company's highly leveraged capital structure and an estimated debt-to- EBITDA ratio of 6.4x, the agency said.

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