Moody’s rates Titan, cuts Husky

Moody's Investors Service said it assigned ratings to Titan Acquisition Ltd. a B3 corporate family rating, B3-PD probability of default rating, Ba3 rating to its new senior secured super priority revolving credit facility, B2 rating to its new senior secured term loan B and Caa2 rating to its new senior unsecured notes.

The outlook is stable.

Titan is a newly formed acquisition vehicle that will be merged with Husky IMS International Ltd. when the buyout closes.

As part of the action, the agency downgraded Husky's corporate family rating to B3 from B1, probability of default rating to B3-PD from B1-PD and the existing first-lien credit facilities to B3 from B1.

Husky's outlook is stable. All of Husky's existing ratings and outlook will be withdrawn when the buyout transaction closes.

"The two-notch downgrade of Husky's CFR reflects the significant increase in leverage (adjusted Debt/EBITDA to 8.3x from 4x at 2017) post-closing of the acquisition by Platinum Equity, together with expectations that the metric will remain above 7x in the next 12 to 18 months," Moody's assistant vice president Peter Adu said in a news release.

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