Fitch downgrades Anagram

Fitch Ratings said it downgraded ratings for Anagram Holdings, LLC and Anagram International Inc., including their long-term issuer default ratings, which have been downgraded to C from CCC following the company's announcement that it skipped its August interest payment and entered a 30-day cure period.

On Monday, Prospect News reported Party City Holdco Inc.’s Anagram units chose not to make the interest payment on their 15% PIK/cash senior secured first-lien notes due 2025. The Anagram units also entered into a forbearance agreement with most of the holders of their first-lien notes and most of the holders of their 10% PIK/cash senior secured second-lien notes due 2026.

“Anagram's credit profile has recently been pressured by continued weak results and the overhang of its parent company Party City's somewhat extended bankruptcy process. Consequently, the outcome of the 30-day period could be a default, which could include a distressed debt exchange (DDE),” Fitch said in a press release.

The agency also removed the ratings from rating watch evolving.

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