Moody’s trims Service King

Moody's Investors Service said it downgraded Midas Intermediate Holdco II, LLC's (Service King) corporate family rating and probability of default rating to B3 and B3-PD, respectively.

At the same time Moody's downgraded the ratings on the company's senior secured first-lien credit facility to B1 from Ba3 and the senior unsecured notes to Caa2 from Caa1.

The outlook is stable.

This concludes the review initiated on Aug. 23.

“Today's downgrade reflects the impact on Service King's credit metrics of its recent weak operating performance driven by sub-par results in one of its core markets, with the result that its credit profile no longer supports the B2 rating," Moody's vice president Charlie O'Shea said in a news release.

“Moody's continues with its favorable view of the sector fundamentals for the collision sector, and believes that Service King's strategic initiatives will lead to an improved profile over the next 12-18 months, which is a key ratings factor.”

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