Moody’s assigns Ba3 to Maverick facility

Moody’s Investors Service said it assigned a Ba3 rating to the first-lien credit facility to be issued to Maverick Purchaser Sub LLC, which is acquiring Aecom’s managed services segment in a leveraged buyout.

The Ba3 rating for the first-lien credit facility is two notches above the B2 corporate family rating assigned to the company, reflecting the presence of effectively junior second-lien debt and unsecured non-debt liabilities that would likely absorb much loss in a stress scenario and improve the recovery prospects for first-lien creditors, Moody’s said.

The B2 rating mirrors initial leverage and liquidity characteristics roughly on par with other private equity led buy outs in the defense services sector, including pro forma beginning leverage in the low-6x range, free cash flow-to-debt in the 5% range and an adequate liquidity profile. Moody’s also assigned a B2-PD probability of default rating.

The outlook is stable.

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