Moody’s could drop Lock Lower, notes, loan

Moody's Investors Service said it placed the B2 corporate family rating assigned to Lock Lower Holding AS, the parent company of Lindorff AB, on review for downgrade.

The agency also placed the B2 rating assigned to the three senior secured notes totaling €1.5 billion and the B1 rating assigned to the €430 million revolving credit facility issued by Lock AS, a subsidiary of Lock Lower Holding, on review for downgrade.

Finally, Moody's placed the Caa1 rating assigned to the two senior notes of a combined amount of €451 million issued by Lock Lower Holding on review for downgrade.

Moody’s said the action was prompted by Lindorff's announcement of an agreement to acquire a stake of up to 94% in Aktua Soluciones Financieras Holdings, SL (unrated). The acquisition is expected to complete in the second quarter of 2016. Moody's expects to conclude its review no earlier than Aug. 29, when Lindorff plans to release its second quarter financial statements.

The review will focus on Lindorff's solvency and leverage ratios, and how they will be affected by the transaction, as well as the potential benefits and challenges of the merger for its business model. The review will focus on the extent to which these factors remain compatible with a B2 corporate family rating, the agency said.

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