Moody's lowers ABC Financial loans

Moody's Investors Service said it affirmed Project Accelerate Parent, LLC's B3 corporate family rating and B3-PD probability of default rating.

The company does business as ABC Financial, Moody's said.

The agency also said it downgraded the instrument ratings on the company's first-lien bank credit facilities to B3 from B2.

The outlook is stable.

ABC Financial plans on fully repaying its second-lien term loan with the proceeds of a $115 million first-lien term loan add-on, Moody's said.

The agency said it views the transaction as a credit positive development as it will save the company about $5 million in annual cash interest expense, the agency said.

The ratings reflect the company's limited scale and business diversity, along with its very high leverage, Moody's said.

The agency said it estimates that the company's debt-to-EBITDA ratio exceeded 8x as of March and will show only modest improvement over the next 12 to 18 months as investment in the company's NextGen platform remains high.

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