Fitch lifts Voyage to stable, rates notes BB, CCC+

Fitch Ratings said it affirmed Voyage Holding Ltd.'s long-term issuer default rating at B.

The outlook was revised to stable from negative.

The outlook revision reflects the completion of the refinancing of 100% of Voyage's existing debt with the proceeds of the offering of £222 million senior secured notes and £50 million second-lien notes, Fitch said.

The previous negative outlook factored the significant refinancing risk within 18 months, as all of Voyage's debt was maturing in April 2014, the agency said.

Fitch has also assigned a BB rating with R1 recovery rating to Voyage Care BondCo plc's £222 million senior secured notes, along with a CCC+ rating and R6 recovery rating to its £50 million second-lien notes.

The notes' ratings reflect the significant asset base through Voyage's ownership of 76% of properties, the agency said.

These were valued in November 2012 at £372 million by an independent party, Fitch said. In its recovery analysis, Fitch said it adopted the liquidation value of the company, primarily consisting of its freehold and long-leasehold properties as the resultant enterprise value is higher than the going-concern enterprise value.

The agency said it believes that a 30% discount on the current market value of the assets is deemed fair in a distress case.

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