Moody’s rates AI Mistral B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to AI Mistral Holdco Ltd., parent and holding company of V.Group.

The agency also assigned definitive B1 ratings to the $515 million first-lien senior secured term loan due 2024, the $30 million acquisition facility due 2022 and the $57.5 million revolving credit facility due 2022.

These facilities were all borrowed by AI Mistral (Luxembourg) Subco Sarl, a subsidiary of AI Mistral Holdco.

The outlook is negative.

Concurrently, Moody's withdrew the B1 corporate family rating and B1-PD probability of default rating on Vouvray Midco Ltd. (both under review for downgrade), former parent of V.Group, concluding the review of the ratings. It also withdrew the instrument ratings of the facilities issued by Vouvray Acquisition Ltd. and Vouvray US Finance LLC.

The action was prompted by the March 9 completion of the acquisition of a majority stake in V.Group by Advent International via AI Mistral Holdco, a recently incorporated company.

The final capital structure also includes a $172.5 million second-lien senior secured term loan due 2025 (unrated).

To reflect the new corporate and financing structure, Moody's said it moved V.Group's corporate family rating to AI Mistral Holdco from Vouvray Midco and downgraded the corporate family rating to B2 from B1.

The downgrade was driven by the material increase in Moody's adjusted leverage to 6.9 times from 4.6 times as at LTM September 2016 and by the lack of organic growth in both revenue and managed fleet during the last two years.

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