Moody's gives B2 to Voyage BidCo

Moody's Investors Service said it assigned a provisional B2 corporate family rating to Voyage BidCo Ltd. and expects to assign a B2-PD probability-of-default rating.

The agency also assigned a provisional B1 rating (LGD3, 42%) to Voyage's £210 million senior secured notes and a provisional Caa1 rating (LGD6, 90%) to the £62 million second-lien notes issued at the level of Voyage Care BondCo plc, a subsidiary of Voyage BidCo Ltd.

The outlook is stable.

The corporate family rating is supported by the group's position in a niche market, a relatively robust and stable business model, a highly regulated business environment, Voyage's strong and long lasting relationships with key customers and its solid track record, the agency said.

Voyage's rating is constrained by the relatively small size of the company, the challenging social care funding environment leading to pricing pressure and high leverage of about 6.1x adjusted debt to EBITDA as of March 2013, the agency noted.

The company only has limited capacity to reduce debt over the coming years due to limited free cash flow generation, Moody's also said.

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