Moody’s rates Motor Fuel, facilities

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to CD&R Firefly 4 Ltd. (MFG), the ultimate parent of the Motor Fuel Group of companies.

Concurrently, the agency assigned a B1 rating (LGD 3) to the £1,196,000,000 senior secured facilities maturing in 2025 as well as to the £230 million revolving credit facility and to the £50 million letter-of-credit facility, both due in 2024.

The £285 million second-lien loan maturing in 2026 was assigned a Caa1 rating (LGD 6).

The borrower of all facilities is CD&R Firefly Bidco Ltd. (UK).

The outlook on all ratings is stable.

The first- and second-lien loan package, together with a £220 million equity injection, will be used to refinance existing debt and to fund the agreed acquisition of LSF9 Robin Investments Ltd. (MRH).

"The B2 rating reflects MFG's material leverage coupled with execution risks linked to the scale of the acquisition and delivery of the synergies," David Beadle, Moody's senior credit officer and lead analyst for Motor Fuel, said in a news release.

"However, the business has strong cash flow dynamics and we acknowledge that management has significant experience operating on a leveraged basis in a market they know very well, and an excellent track record for successfully integrating historic acquisitions."

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