Moody's downgrades Advantage Sales

Moody's Investors Service said it downgraded the ratings of Advantage Sales & Marketing Inc., including its corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, first-lien bank credit facilities to B2 (LGD 3) from B1 (LGD 3) and second-lien term loan to Caa2 (LGD 5) from Caa1 (LGD 5).

The outlook is stable.

This action concludes a review for downgrade that began in January.

The downgrades reflect expectations that the company's debt-to-EBITDA ratio and free cash flow-to-debt will remain more consistent with a B3 rating, given industry headwinds and margin pressures, Moody's said.

The downgrades also acknowledge a view that Advantage's interest expense will increase when it seeks to refinance its significant 2021 debt maturities, reducing its level of free cash flow, the agency said.

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