Moody’s revises Lifestyle view to negative

Moody’s Investors Service said it revised the outlook on Lifestyle International Holdings Ltd. and its subsidiaries LS Finance (2022) Ltd. and LS Finance (2025) Ltd. to negative from stable.

Concurrently, Moody’s affirmed Lifestyle’s Ba2 corporate family rating and the Ba3 senior unsecured debt ratings on the notes guaranteed by Lifestyle and issued by LS Finance (2022) and LS Finance (2025).

The rating action follows Lifestyle’s Friday announcement it had acquired a commercial property in St. James’s Square, London, for £250 million for long-term investment purposes. The seller entered a leaseback agreement for 24 months, the agency said.

“The outlook change reflects our expectation that Lifestyle’s credit metrics will remain weak over the next couple of years, because the company’s London property acquisition will delay its deleveraging,” said Gloria Tsuen, a Moody’s vice president and senior credit officer, in a press release.

“The negative impact on its credit profile is partly offset by the high quality of the property in a prestigious location, and the diversification effect in terms of asset base,” added Tsuen.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.