Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers V > Headlines for Vector Group Ltd. > News item |
Moody's rates Vector notes B1
Moody's Investors Service said it assigned B2 corporate family and probability-of-default ratings to Vector Group Ltd. and a B1 rating (LGD3, 33%) to its $325 million senior secured notes due 2015, a B1 to its proposed offering of $75 million senior secured notes due 2015 and a speculative grade liquidity rating of SGL-2.
The outlook is stable.
Vector's B2 corporate family rating and stable outlook reflect its relatively small scale and limited pricing flexibility in the highly regulated, competitive, secularly declining domestic cigarette business, the agency said.
Ratings are also constrained by Vector's high leverage, negative free cash flow after dividend payments as well as the ongoing threat of adverse tobacco litigation, the agency added.
Vector's ratings are supported by its sustainable MSA cost advantage, its track record of growing retail distribution, market share and unit volumes of its deep discount Pyramid brand while maintaining acceptable profitability metrics, S&P said.
Vector's real estate investments are conservatively managed and provide an additional, albeit potentially volatile, source of earnings diversification and cash flow with controllable capital requirements, the agency noted.
© 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.