Moody's lowers Service King

Moody's Investors Service said it downgraded all ratings of Midas Intermediate Holdco II, LLC (Service King), including the corporate family rating to Caa3 from Caa1 and its probability of default rating to Caa3-PD from Caa2-PD. The agency changed the outlook to negative from positive.

"Today's actions reflect Moody's growing concern surrounding the risks that Service King is facing as it faces its short-term capital structure requirements, with the looming October 2022 notes maturity potentially creating a domino effect with the various springing maturities of other facilities," stated Charlie O'Shea, a Moody’s vice president, in a press release.

"In addition, Service King's operating performance continues to suffer from the impact on demand from pandemic-related issues, particularly reductions in miles driven, as well as parts shortages," O’Shea said.

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