Moody’s cuts True Religion on Chapter 11

Moody’s Investors Service downgraded True Religion Apparel, Inc.’s Probability of Default Rating to D-PD from Caa3-PD and its second lien term loan rating to C from Ca and affirmed its Corporate Family Rating at Ca and first lien term loan at Ca. The outlook remains negative.

It then withdrew all the ratings and the outlook.

The action follows True Religion’s Chapter 11 filing.

Moody’s confirms AMC, upgrades Carmike notes

Moody’s Investors Service confirmed AMC Entertainment Holdings, Inc.’s existing senior secured term loan at Ba1, confirmed its senior subordinated notes at B2 and upgraded the $230 million of senior secured notes of Carmike Cinemas, Inc. to Ba1 from B1.

Moody’s assigned a B1 corporate family rating, B1-PD probability of default and SGL-2 speculative grade liquidity rating to AMC Entertainment Holdings, Inc. reflecting the merger of AMC Entertainment Inc. into AMC Entertainment Holdings. The outlook is stable.

The confirmation ends a review for downgrade initiated when the company announced an agreement to acquire Nordic Cinema Group coupled with earlier transactions including Odeon & UCI and Carmike.

The Carmike notes are guaranteed by AMC and now benefit from lift provided by substantially more subordinated debt in AMC’s capital structure.

Moody’s said the B1 rating incorporates high leverage that, although expected to improve, is currently above its tolerance for the level, weakly positioning the company in the rating category.

The rating agency projects that leverage, following the recent acquisitions of Carmike, Odeon and Nordic, will approach 5x at the end of 2018, improving from approximately 5.7x pro forma as of March 31, with growth in EBITDA and mandatory term loan amortization.

Despite these challenges, the company is the largest operator in the world, with operations that extend into Europe and the Nordics which contribute over 30% of pro forma revenues. The diversity helps spread geographic risks, thus reducing the direct impact of negative trends in a particular region.

S&P puts Spiral on watch

S&P said it placed the B corporate credit rating on Spiral Holdings Inc. on CreditWatch with negative implications.

The B+ rating and 2 recovery rating on the company's revolver due 2021 and $290 million first-lien term loan due 2022 are unchanged. The 2 recovery rating indicates 70% to 90% expected default recovery.

The CCC+ rating and 6 recovery rating on its $80 million second-lien term loan due 2023 also are unchanged. The 6 recovery rating indicates 0 to 10% expected default recovery.

The agency said it expects that these facilities will be refinanced as part of this transaction, after which the ratings will be withdrawn.

The CreditWatch placement follows news that Centerbridge Partners has agreed to acquire the company from Clearlake Capital and merge it with Vision Solutions Inc., which Centerbridge is also acquiring, S&P explained.

Clearlake will retain a minority interest in the merged entity, the agency noted.

While Spiral's scale will increase, S&P said it believes this transaction could result in an increase in leverage at the combined company and integration risks, which could result in a downgrade.

Moody’s rates Hayward loans B3, Caa2

Moody’s Investors Service today assigned a first time B3 Corporate Family Rating and B3-PD Probability of Default Rating to Hayward Industries, Inc. and a B3 (LGD 3) rating to the company’s proposed $850 million first lien term loan and a Caa2 (LGD 6) rating to its proposed $285 million second lien term loan. The outlook is stable.

The ratings reflect the company’s very high financial leverage and aggressive financial policy, and the cyclical nature of the industry in which it competes.

The rating also reflects Hayward’s good margins and its position as one of four primary suppliers of pool equipment, Moody’s said.

The stable outlook incorporates Moody’s expectation that Hayward will remain a very highly leveraged company but that earnings will grow and that free cash flow will remain positive.

S&P rates Helix Gen loans BB

S&P said it assigned a BB rating and 2 recovery rating to Helix Gen Funding LLC's $1.605 billion term loan B and $175 million revolver.

The outlook is stable.

The 2 recovery rating indicates 70% to 90% expected default recovery.

Project financing Helix Gen Funding issued the loan and a revolver to support LS Power Equity Partners III LP's acquisition of four power assets from TransCanada Corp.

The stable outlook reflects an expectation for sound operational performance at all four plants and power prices that do not decline materially from current expectations, the agency said.

Moody’s less likely to upgrade HCA notes, loans

Moody’s Investors Service said it was less likely to upgrade the senior secured notes and credit facilities of HCA Inc. from their current level of Ba1 after the company amended and extended its asset-based revolving credit facility.

Absent any further changes to the capital structure, there is reduced likelihood that the senior secured debt (including notes and credit facilities) would be upgraded to investment grade if Moody’s upgrades HCA’s Corporate Family Rating to Ba1, the agency said. This is due to changes in the HCA’s capital structure and attributes of Moody’s Loss Given Default Methodology.

Moody’s affirms TurboCombustor at Caa1

Moody’s Investors Service affirmed its ratings on TurboCombustor Technology, Inc. including the corporate family rating at Caa1, the probability of default rating at Caa2-PD and the senior secured term loan at Caa1. It also assigned a Caa1 rating to the senior secured revolver due December 2020, following a maturity extension from December 2018. The outlook is stable.

Moody’s said the rating reflects TurboCombustor’s small scale, high financial leverage, tight liquidity profile and pronounced customer concentration.

It anticipates weak credit metrics through the end of 2018 as the company continues to face a number of earnings headwinds including high restructuring and new product introduction costs, elevated scrap rework charges and declining sales from legacy platforms.

At the same time, TurboCombustor has content on several key engine platforms that will dramatically ramp up in production over the next 18 to 24 months.

The stable outlook acknowledges TurboCombustor’s sizable content on key growth engine platforms which is expected to translate into topline growth and a gradual improvement in credit metrics over the intermediate term.

Moody’s affirms Columbia Property

Moody’s Investors Service affirmed all of the ratings of Columbia Property Trust, Inc. including the Baa2 senior unsecured debt rating of its operating subsidiary, Columbia Property Trust OP, LP. The outlook remains stable.

The affirmation follows the REIT’s announcement that it has completed a large joint venture transaction with Allianz Real Estate initially valued at $1.3 billion, Moody’s said.

The stable outlook reflects the agency’s expectation that Columbia will maintain its conservative financial profile as it seeks continued growth, both within and outside of its joint ventures.

S&P rates Baker Hughes A+, lifts debt to A+

S&P said it assigned an A+/A-1 corporate credit rating to Baker Hughes Inc.

The outlook is stable, reflecting the stable outlook on General Electric Co.

S&P also said it raised the long-term issue-level rating on Baker Hughes' senior unsecured debt to A+ from A and removed the rating from CreditWatch, where it was placed with positive implications in October 2016.

The agency also said it affirmed the short-term A-1 rating on the company's commercial-paper program and removed the rating from CreditWatch, where they were placed with positive implications in October 2016.

The ratings reflect a belief that the company is highly strategic to General Electric, S&P said.

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