Moody's may cut Avio, subsidiary

Moody's Investors Service said it placed the ratings of Avio Holding SpA and its indirect subsidiary, ASPropulsion Capital BV, on review for possible downgrade following the announcement of a proposed €350 million debt issuance in the form of pay-in-kind notes at a holding company level above Avio Holding.

On review are Avio's Ba3 senior implied rating and B2 issuer rating and ASP Propulsion's B2 rated €200 million senior unsecured notes.

Proceeds will be used to fund the purchase of a vendor note from Fiat by an intermediate holding company and to finance a payment to shareholders.

Moody's said its review is sparked by the unanticipated use of new third-party capital to pay out shareholders.

© 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.