Moody's gives Comdata, loan, notes Caa3

Moody's Investors Service said it assigned a Caa3 corporate family rating and C-PD/LD probability of default rating to Comdata SpA. The /LD designation on the PDR reflects a limited default assignment because the company deferred payment of interest accrued under its revolving credit facility beyond the contractual terms.

Concurrently, Moody's assigned a Caa3 rating to the €510 million senior secured term loan B due 2024 and to the €85 million senior secured revolver due 2023, both borrowed by Comdata, and a Caa3 rating on the €356.8 million series 1 senior secured notes due July 2024 issued by Comway SPV Srl.

“The Caa3 rating assigned to Comdata primarily reflects the company's weak credit metrics, including its elevated leverage and negative free cash flow (FCF), as well as Moody's view that the company's current capital structure is unsustainable and its liquidity is weak to support its near-term business needs as well as the company's turnaround plan,” the agency said in a press release.

The outlook is stable. The outlook reflects the increased certainty on the company’s future capital structure following the signing of the lock-up agreement and post the debt restructuring, which will be considered a distressed exchange, Moody’s said.

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