Moody's upgrades ASM Global

Moody's Investors Service said it upgraded the corporate family rating of SMG US Midco 2, Inc. (ASM Global) to B3 from Caa1 and upgraded the senior secured ratings on the company's first-lien credit facilities including the $589 million term loan to B3 from Caa1. The senior secured first-lien revolving credit facility was also upgraded to B3 from Caa1 for SMG Holdings, LLC. The outlook was changed to stable from negative.

“The rating actions reflect Moody's expectation for continued recovery in demand for in-person live events, particularly in the U.S. that would improve operating and credit metrics for the company. The operating impact from the coronavirus pandemic is a key driver of the rating actions and is considered a social risk since the ability of the company to generate revenue is dependent on the ability to hold live in-person events,” the agency said in a press release.

The stable outlook reflects an improving environment for live events and venue management, particularly in the U.S. where ASM Global generates two thirds of its earnings. In the U.S. 85% of venues managed by ASM are open with most of those venues operating at full capacity, Moody’s said.

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