Moody’s rates CIBT facilities B2, Caa2

Moody's Investors Service said it assigned CIBT Global, Inc. a corporate family rating of B3 and a probability of default rating of B3-PD.

Concurrently, the agency assigned a B2 rating to CIBT's senior secured first-lien credit facilities, comprised of a $330 million term loan and an undrawn $65 million revolver, and a Caa2 rating to the company's $120 million second-lien term loan.

The action follows the pending acquisition of the company by Kohlberg & Co. with proceeds to be used to partially fund the purchase transaction.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects CIBT's elevated pro forma trailing debt leverage of just over 7 times (Moody's adjusted for operating leases) as of March 31, 2017 while also considering the company's limited scale and acquisition driven growth strategy in the competitive and fragmented market for third party travel visa, passport, and immigration logistics services for corporate clients.

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