Moody's trims Caliber ratings

Moody's Investors Service said it downgraded ratings of Wand NewCo 3, Inc., doing business as Caliber, including the corporate family rating, which was downgraded to B3 from B2.

Other ratings downgraded include issuer Wand NewCo 3’s probability of default rating to B3-PD from B2-PD, senior secured first-lien term loan to B2 (LGD3) from B1 (LGD3), senior secured first-lien revolving credit facility to B2 (LGD3) from B1 (LGD3) and senior secured second-lien term loan to Caa2 (LGD5) from Caa1 (LGD5).

The outlook was changed to stable from negative.

“Today's rating actions recognize the persistent weakness in Caliber's credit metrics due to the combination of its aggressive expansion activity and pandemic-driven declines in volume, resulting in debt/EBITDA approaching 9 times and EBIT/interest remaining below 1 time,” stated Moody's vice president Charlie O'Shea in a news release.

“In addition, given the vagaries of the operating environment as Covid issues remain, there is limited visibility as to potential timing of a meaningful rebound in segment fundamentals that would lead to an improvement in Caliber's credit metrics.”

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