Moody’s downgrades Planet

Moody’s Investors Service said it downgraded the ratings of Franklin UK Midco Ltd. (Planet), the holding company of Franklin UK Bidco Ltd. and Fintrax International Holdings Ltd., including Planet’s corporate family rating to B3 from B2 and the senior secured instrument ratings consisting of a term loan B of €258 million due 2024 and €65 million revolver due 2023 issued by Franklin UK Bidco and an acquisition facility of €97 million due 2024 issued by Fintrax to B3 from B2, as well as Planet’s probability of default rating to B3-PD from B2-PD. The outlook has been changed to negative from stable.

“We expect Planet’s leverage to rise sharply from less than 6x debt/EBITDA to over 8 or higher as a result of earnings pressure from the coronavirus. We also anticipate that its coverage will reduce from close to 5x EBITA/interest to less than 3x and that the company will generate only limited free cash flow (after capex) in 2020 and 2021,” said Moody’s in a press release.

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