Moody's downgrades Smart Start

Moody's Investors Service said it downgraded 1A Smart Start LLC's credit ratings, including its corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

Moody's affirmed the B2 rating on Smart Start's first-lien debt, which includes a $40 million revolver and an upsized by $40 million, $388 million term loan.

“Despite the CFR downgrade, the introduction of $115 million of new second-lien debt (unrated) provides rating support to the first-lien debt, which as a result retains its B2 rating,” the agency said in a press release.

The loan proceeds and a small amount of balance sheet cash will be used to make a $154 million distribution to Smart Start's private equity owners and meet transaction fees.

The outlook remains stable.

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