Fitch lowers Moto's second-lien rating

Fitch Ratings said it lowered Moto Ventures Ltd.'s £150 million second-lien debt to CCC from CCC+ with a recovery rating of RR6 under its new corporate recovery ratings and instrument ratings criteria, and removed the rating from under criteria observation, where they were placed on April 9.

The downgrade of the second-lien rating reflects Fitch's change in criteria in respect of the revised distressed enterprise value (EV)/EBITDA multiples used to derive the instrument rating under the agency's going-concern (GC) approach. We apply a maximum regional recovery multiple (7x) for EMEA-based credits according to the new criteria, which is lower than the 7.5x multiple used previously,” Fitch said in a press release.

The agency also affirmed the company’s B- issuer rating.

The outlook is stable.

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