Moody’s trims Aston Martin Lagonda

Moody’s Investors Service said it downgraded Aston Martin Lagonda Global Holdings plc’s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD. Concurrently, Moody’s downgraded the instrument ratings of Aston Martin Capital Holdings Ltd.’s senior secured notes to Caa1 from B3.

“The downgrade reflects the weak profitability and low wholesale volumes in 2019 and particularly towards the end of the year,” said Tobias Wagner, a vice president and senior analyst at Moody’s, in a press release. “Cash flow for the second half of 2019 was also significantly below Moody’s expectations resulting in a lower starting point for liquidity as the company prepares for the critical DBX production ramp up and another year of significant investment spending.”

The weak performance in the fourth quarter, which typically is the most critical for the company, resulted in full year company-adjusted EBITDA falling -45% (mid-point) to £130 - £140 million from £247 million in 2018. Total wholesale volumes dropped 8.8% and core wholesale volumes 7% in 2019.

The outlook remains negative.

S&P cuts Edenor

S&P lowered its issuer credit and issue-level ratings on Empresa Distribuidora Y Comercializadora Norte SA’s (Edenor SA) to CCC+ from B-.

Argentina public law froze electricity rates until at least June. S&P now sees the company’s capital structure as unsustainable because the company will rely on favorable business and market conditions to make the timely interest and capital payment on its $137 million outstanding 2022 bond.

The outlook is negative

Moody’s ups Banca Monte dei Paschi bonds

Moody’s Investors Service said it upgraded to Aa3 from A1 the ratings assigned to the mortgage covered bonds issued by Banca Monte dei Paschi di Siena SpA. The upgrade was prompted by an upgrade in the bank’s counterparty risk assessment to Ba3 (cr) from B1 (cr).

S&P takes Pattonair off watch

S&P said it removed its B- long-term issuer credit rating on Pioneer Holdings (Pattonair) from CreditWatch positive, affirmed and withdrew this rating.

“We also affirmed and withdrew the B- issue rating on Pattonair’s senior secured debt. The outlook at the time of the withdrawal was stable. The withdrawal was at the issuer’s request following the full repayment of all outstanding rated debt,” said S&P in a press release.

The rating actions follow the merger between Wesco Aircraft Holdings and Wolverine Intermediate Holding II Corp., the parent of Pattonair.

In a separate rating action, S&P assigned its B- long-term issuer credit rating to Wesco.

S&P rates Ashton Woods notes B-

S&P said it assigned its B- issue-level rating and 4 recovery rating to Ashton Woods USA LLC’s proposed $250 million senior unsecured notes due 2028. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of a payment default.

The company will use the proceeds to reduce the borrowings under its revolving credit facility (not rated), add cash to its balance sheet and for other general corporate purposes.

Moody’s assigns Presidio notes B1, Caa1

Moody’s Investors Service said it affirmed the B2 corporate family rating of Presidio Holdings Inc. (New) and assigned a B1 rating to the company’s proposed senior secured notes and Caa1 to the proposed senior unsecured notes.

Proceeds will be used to refinance acquisition bridge financing which, along with $855 million in contributed and rolled over equity, funded the roughly $2.2 billion acquisition of Presidio by BC Partners Advisors LP that closed on Dec. 19.

Presidio’s B2 rating reflects its small scale compared to competing IT value-added resellers and managed services firms, and the challenges of keeping up with evolving requirements of IT deployments for enterprises including the ongoing transition to cloud platforms. The buyout by BC Partners will result in debt to EBITDA of 6x (Moody’s adjusted). Presidio also has high vendor concentration with 59% of the company’s gross revenues represented by Cisco products and services, although improved compared to over 80% six years ago.

The outlook remains stable.

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