Moody’s rates Alliance Automotive tap issue B2

Moody's Investors Service said it affirmed Alliance Automotive Holding Ltd.'s (AAG) B1 corporate family rating, and B1-PD probability of default rating.

Concurrently, the agency affirmed the B2 instrument rating on the €460 million existing senior secured notes issued by Alliance Automotive Finance plc, and assigned a B2 instrument rating to the €180 million tap, issued by the same entity.

The outlook is stable.

Net proceeds from the tap issuance will be used to fund AAG's further acquisitive growth. On Aug. 10, AAG signed a conditional agreement to acquire FPS Distribution Ltd., the Autoparts Distribution division of Lookers plc, a U.K.-based car dealership. The total purchase price consideration, calculated on a debt and cash free basis, amounts to £120 million and the transaction is expected to complete by the early November 2016.

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