Moody’s rates Hurtigruten Caa2

Moody's Investors Service said it assigned a Caa2 corporate family rating and a Caa2-PD probability of default rating to Hurtigruten NewCo AS, along with a Ca rating to €667.58 million of backed senior unsecured term loan due February 2029 borrowed by the company. The outlook assigned is stable.

Concurrently, Moody's assigned a B1 rating to €205 million guaranteed super senior secured term loan A due June 2027 and a Caa1 rating to €345 million guaranteed senior secured term loan B due September 2027 borrowed by Hurtigruten's immediate subsidiary Hurtigruten Group AS.

Finally, the agency upgraded to B3 from Caa1 the rating of €300 million backed senior secured notes due February 2025 issued by Hurtigruten's indirect subsidiary Explorer II AS and revised the outlook for Hurtigruten Group and Explorer II to stable from negative.

These actions follow Hurtigruten's completion of its capital restructuring. Since Hurtigruten Newco is at the top of the new restricted group, Moody's said it withdrew the Caa2 CFR, the Ca-PD PDR and the Caa3 backed senior secured bank credit facilities of Hurtigruten Group.

In a press release, the agency said the restructuring will provide “modest relief to the company's liquidity via an overall extended debt maturity profile, reduced cash interest payments and the injection of €70 million of net incremental cash after the payment of all transaction-related fees.”

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