S&P trims SVP Worldwide

S&P said it lowered its ratings for SVP Worldwide (Stitch Acquisition Corp.) and its senior secured term loan to CCC- from CCC. The loan’s 4 recovery rating, indicating average (30%-50%; rounded estimate: 40%) recovery in default is unchanged.

“The CCC- rating reflects our belief the company will default over the next six months, either by missing principal/interest payments or restructuring its debt due to a liquidity shortfall.

“SVP's capital structure remains unsustainable given its high debt and interest costs relative to EBITDA and cash flow. We continue to assess the company's liquidity as weak because its liquidity sources are insufficient to cover its cash needs over the next 12 months. SVP had $20.5 million cash and negligible availability under its asset-based lending (ABL) facility (restricted by the fixed-charge coverage covenant) as of Sept. 30, 2023,” S&P said in a press release.

The outlook is negative.

Moody’s downgrades Eutelsat

Moody's Investors Service said it downgraded to Ba3 from Ba2 the long-term corporate family rating and to Ba3-PD from Ba2-PD the probability of default rating of Eutelsat Communications SA. Concurrently, Moody's downgraded to Ba3 from Ba2 the ratings on the senior unsecured debt instruments issued by its main operating subsidiary Eutelsat SA, including the €800 million and €600 million notes maturing in October 2025 and July 2027, respectively.

Eutelsat lowered its 2024 adjusted EBITDA guidance to €650 million - €680 million from €725 million - €825 million, and suspended its financial objectives for 2025 until FY24 results, including an expected adjusted EBITDA of €900 million - €1.1 billion.

The revision was caused by the low-earth orbit activities of OneWeb are behind schedule relative to the original roadmap, resulting from delays in some ground stations, the agency said.

"The downgrade to Ba3 reflects the deterioration in the combined group's credit metrics beyond our previous expectations, in light of the slower-than-expected contribution from OneWeb," said Ernesto Bisagno, a Moody's vice president, senior credit officer and lead analyst for Eutelsat, in a press release.

The outlook remains negative.

Fitch cuts, then withdraws Farfetch

Fitch Ratings said it downgraded Farfetch Ltd.'s long-term issuer default rating to D from CC and withdrew it.

“The downgrade reflects the sale of its business through a pre-pack administration process and its plan for liquidation,” Fitch said in a press release.

The agency, however, said it affirmed the CCC-/RR4 (43%) ratings on Farfetch US Holdings, Inc.’s $600 million term loan due 2027.

Moody’s lifts Beacon Roofing

Moody's Investors Service said it upgraded the ratings of Beacon Roofing Supply, Inc., including the corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD, senior secured notes to Ba2 from Ba3, senior secured term loan B to Ba2 from Ba3 and senior unsecured notes to B1 from B2. The company's speculative grade liquidity rating remains unchanged at SGL-1.

“The upgrade of Beacon's CFR reflects substantially improved governance following Clayton Dubilier & Rice's (CD&R) complete exit of its investment in the company, which had been a constraint on the rating. CD&R also no longer has any board representation in Beacon. At June 30, 2023, CD&R controlled 33% of Beacon's voting rights and held two board seats. CD&R sold its equity interest through a series of transactions that began in July 2023 when Beacon repurchased all of CD&R's outstanding shares of preferred stock, followed by three secondary offerings of common stock in August 2023, December 2023 and January 2024.

The upgrade also recognizes Beacon's solid operating margin that helps drive strong cash flow generation. The company's operating margin was about 8% and it generated about $680 million of free cash flow for the 12 months ended Sept. 30, 2023.

The outlook remains stable.

S&P upgrades Ryman Hospitality

S&P said it raised its ratings on Ryman Hospitality Properties Inc. to B+ from B, its senior secured debt to BB from BB- and the senior unsecured rating to BB- from B+.

“Ryman reported strong preliminary results for year-end 2023, with same-store RevPAR and same-store total RevPAR up in the low-double-digit percent area. The company also reported all-time highs for room nights booked and average daily rate (ADR). These results drove consolidated revenue growth and S&P Global Ratings-adjusted EBITDA growth 20% and 24%, respectively, year over year.

“In addition, Ryman ended the year with about $1.9 billion of room revenue on the books over the next five years, with 2024 revenue outpacing 2019 levels (for T + 1 or 2020) by about 11%. In 2024, we expect Ryman to grow total revenue in the high-single-digit percent area as it benefits from a full year of revenue from the JW Marriott Hill Country and total RevPAR to grow in the low- to mid-single-digit percent area,” the agency said in a statement.

The outlook is positive.

Moody's boosts Savers Value Village

Moody's Investors Service said it upgraded Evergreen AcqCo 1 LP's (Savers Value Village) corporate family rating to B1 from B2, its probability of default rating to B1-PD from B2-PD, its senior secured first-lien term loan, senior secured first-lien revolving credit facility and its backed senior secured first-lien notes ratings to B1 from B2. At the same time, Moody's assigned an SGL-1 speculative grade liquidity rating.

“The upgrade reflects governance considerations including Savers Value Village's debt repayment using the proceeds from its initial public offering which, along with the company's solid operating performance, has resulted in enhanced credit metrics. The upgrade also reflects Moody's expectation for continued solid operating performance as it will continue to benefit from favorable demand trends for low-cost thrift store clothing and hard goods which will lead to further improvement in credit metrics over the next 12-18 months.

“Savers Value Village's newly assigned SGL-1 represents very good liquidity including meaningful excess cash, solid free cash flow generation and nearly full availability under its $75 million revolving credit facility as of Sept. 30, 2023, fueled by high margins on low-cost inventory sourced from on-site donations, non-profit partners, and GreenDrop locations,” Moody’s said in a press release.

The outlook is maintained at stable.

Moody’s changes Ali outlook to positive

Moody’s Investors Service said it changed its outlook for Ali Holding Srl and Ali Group North America Corp. to positive from stable and affirmed its Baa3 ratings.

"Moody's decision to change the outlook on Ali's ratings to positive from stable was triggered by the swift deleveraging Ali has achieved since the rating assignment in 2021," said Oliver Giani, Moody's lead analyst for Ali, in a press release.

"Within only one year after closing the Welbilt, Inc. (Welbilt) acquisition, Ali managed to reduce its debt/EBITDA to 2.6x, meeting the leverage expectation set for the Baa2 rating category. Ali's cash-preserving financial policy with a strong track record is a clear credit strength," he added.

Moody’s switches EnerSys to positive

Moody’s Investors Service said it changed its outlook for EnerSys to positive from stable and affirmed the Ba2 corporate family rating, Ba2-PD probability of default rating and Ba3 rating on the company's senior unsecured notes. SGL-1 speculative grade liquidity rating is unchanged.

“The positive outlook reflects Moody's expectation of robust free cash flow, despite higher capital expenditures and a weak macro environment. Cash flow will benefit from expected tax credits for qualifying battery products over the next several years. Moody's also expects EnerSys to maintain moderate leverage even if it undertakes debt-funded acquisitions,” the agency said in a press release.

Moody's said it forecasts EnerSys’ leverage will be below 3x over the next year, though this could rise with substantial debt-funded acquisitions.

S&P turns Expleo outlook to positive

S&P said it revised its outlook for Expleo Group to positive from stable and affirmed the B- ratings on the company and its loans. The 3 recovery rating remains unchanged, reflecting meaningful recovery prospects (50%-70%; rounded estimate: 55%) in default.

“We expect Expleo Group's revenue will increase significantly in 2024, driven by a mix of organic and acquired growth. We forecast 12% revenue growth in 2024, of which 8% will be organic and 4% will come from acquisitions realized during the year. Organic growth will result from the continuously strong demand from Expleo Group's industrial clients, notably in the aerospace and automotive industry, as they face significant engineering challenges related to the need for less polluting planes, cars, and trucks,” S&P said in a press release.

Moody's alters US Foods view to positive

Moody's Investors Service said it changed the outlook for US Foods, Inc. to positive from stable. Concurrently, the agency affirmed all the company's ratings, including the Ba3 corporate family rating, Ba3-PD probability of default rating, Ba3 senior secured bank facility rating, and B2 senior unsecured global notes rating. The company's SGL-1 speculative grade rating is unchanged.

“The change in outlook to positive from stable and ratings affirmation reflect US Foods' significant earnings growth driven by market share gains and operational improvements as the company has executed on its strategic plan.

“For the full year 2023 based on reaffirmed guidance, revenues will increase by roughly 6% driven mainly by organic case volume growth, and adjusted EBITDA will be up 14%. Combined with a modest debt paydown, this has resulted in Moody's-adjusted debt/EBITDA declining to an estimated 3.5x for the year ended Dec. 31, 2023, from 5x as of Dec. 31, 2022. Moody's expects further credit metrics improvement and continued very good liquidity in 2024,” the agency said in a press release.

Moody’s revises Osaic outlook to stable

Moody's Investors Service said it concluded its review for downgrade of Osaic Holdings Inc. and revised the outlook to stable. The agency also confirmed Osaic's B2 corporate family rating, B1 senior secured first-lien bank credit facility rating, including the proposed $500 million incremental senior secured first-lien term loan, B1 senior secured rating and Caa1 senior unsecured rating.

Moody’s started the review on Dec. 18 after Osaic announced that it agreed to buy Lincoln Financial Advisors Corp. and Lincoln Financial Securities Corp. from Lincoln National Corp. On Jan. 31, Osaic announced it plans on funding the deal with a $500 million incremental senior secured first-lien term loan, balance sheet cash, and equity issuance.

“Moody's said the confirmation of Osaic's ratings reflects its improved profitability, cash flow and debt leverage throughout 2023, which will allow it to better absorb the debt it plans to issue to fund the purchase of Lincoln Wealth and maintain a financial profile consistent with its current rating level. The confirmation also reflects the relatively modest impact of the acquisition financing on Osaic's debt leverage and interest coverage as well as the scale and strategic benefits of the acquisition,” the agency said in a press release.

The agency said it forecasts Osaic’s Moody's-adjusted debt/EBITDA leverage ratio to be at or under 5.5x on a pro forma basis at the end of 2024, compared to Osaic's historical 5.3x ratio for the trailing 12 months ended Sept. 30.

Fitch rates Ardonagh notes B, CCC

Fitch Rating said it assigned expected B/RR3 ratings to Ardonagh Finco Ltd.’s planned €500 million and $500 million of senior secured notes. The agency also gave expected CCC/RR6 ratings to Ardonagh Group Finance Ltd.’s proposed senior unsecured notes.

Both issuers are ultimately owned by Ardonagh Midco 2 plc. Fitch concurrently affirmed Ardonagh Midco’s B issuer rating and positive outlook.

Ardonagh plans to use its debt issuance proceeds, together with new U.S. dollar, euro and Australian dollar term loan Bs, to refinance all its senior unsecured PIK toggle notes and unitranche term loan B facilities and local facility in Australia.

“This should push out its debt maturities to 2031 and 2032 and improve the group's financial flexibility and capacity for organic deleveraging, further boosted by our expectation of positive FCF from 2025,” the agency said in a press release.

Moody’s assigns Ba1 to Post notes

Moody's Investors Service said it assigned Ba1 ratings to Post Holdings, Inc.'s planned senior secured notes and new $1 billion senior secured revolving credit facility. Post is also seeking to upsize and extend its revolver. The issuance of the notes is not conditioned on the closing of the revolver refinancing.

All other ratings, including the company's B1 corporate family rating, Ba1 senior secured debt ratings and B2 senior unsecured notes ratings are unchanged, the agency said.

The proceeds will be used to repay the outstanding $400 million senior secured term loan due 2026, repay the remaining $459 million principal outstanding on the 5¾% unsecured notes due 2027, and pay fees and expenses related to the transaction.

“The transaction is credit positive because it further bolsters the company's already very good liquidity and extends the maturity profile. The existing $750 million revolver expiring in March 2025 is being upsized to $1 billion, with the expiry extended to 2029. The revolver expiry will spring to October 2027 if the unsecured notes due 2028 are not redeemed by then. After the refinancing transactions, the nearest debt maturity will be the $575 million convertible senior notes due 2027.

“Moody's expects to withdraw the Ba1 ratings on the existing revolver and senior secured term loan A if the instruments are retired as anticipated in conjunction with the refinancing,” the agency said in a press release.

The stable outlook is unchanged.

Moody’s assigns Baa3 to Audacy DIP loan

Moody's Investors Service said it assigned a Baa2 rating to Audacy Inc.’s $32 million senior secured super-priority debtor-in-possession term loan facility as per an interim order approved by the United States Bankruptcy Court for the Southern District of Texas on Jan. 8, 2024.

“The rating primarily reflects the collateral coverage compared to the small size of the DIP facility and the structural features of the DIP facility. Once the final order is approved which is scheduled for February 20, 2024, Moody's expects the net proceeds will be used to fund operations including fulfilling commitments to employees, advertisers, partners and vendors, provide sufficient liquidity at bankruptcy exit and pay certain transaction-related fees and expenses,” Moody said in a press release.

The proceeds, excluding related transaction fees, are expected to be $30.3 million. Along with the DIP facility, the court also approved a $25 million upsize of the accounts receivables financing facility to $100 million from $75 million. The DIP facility is convertible into an exit facility upon the company's emergence from the court-supervised process.

There is no outlook on the facility.

Fitch assigns BB- to NOVA notes

Fitch Ratings said it assigned BB-/RR4 ratings to NOVA Chemicals Corp.'s $650 million of senior unsecured notes.

The ratings are the same as those on NOVA’s outstanding senior unsecured notes.

The notes will be used to refinance the remaining 2024 notes and cancel the $500 million unsecured delayed-draw term loan.

The outlook is stable.

S&P assigns BB- to Kier, notes

S&P said it preliminarily assigned BB- ratings to Kier Group plc and its planned up to £250 million of senior unsecured notes. The preliminary recovery rating on the notes is 3. The outlook is stable.

“Kier's credit metrics strengthened in fiscal year 2023 (ended June 30, 2023), thanks to improved profitability and robust cash generation. The group demonstrated progress toward its medium-term plan and achieved a net cash position (as defined by management) while improving its profitability and cash conversion. Kier's S&P Global Ratings-adjusted EBITDA increased by 19% to £162 million, up from £136 million in fiscal 2022, due to higher revenue in its infrastructure and construction divisions, more than offsetting the impact from lower property transactions,” S&P said in a statement.

The agency also noted that “We regard Kier's narrow geographic diversity, project concentration, and modest scale as the main constraints for its credit profile. The group generated revenue of about £3.4 billion in fiscal 2023, and adjusted EBITDA of about £162 million. We project the group's sales will increase to about £3.9 billion by fiscal 2025. Although growing, this is still modest compared with similar or higher-rated peers, such as Webuild and Fluor, which are several times larger and have operations in multiple countries.”

Kier will use the new notes to refinance its capital structure. The company recently amended and extended its revolving credit facility to £150 million due in March 2027. The funds will be used to pay down, on a pro-rata basis, Kier's £75 million (equivalent) private placement notes maturing in January 2025, its recently amended and extended revolver and for general corporate purposes.

Fitch rates Kier, notes BB+

Fitch Ratings said it published Kier Group plc's long-term issuer default rating of BB+. The outlook is stable. The agency also published BB+/RR4 ratings for the group’s planned £250 million senior unsecured notes.

“Kier's long-term IDR reflects the group's strong domestic market position driven by its ability to deliver across a broad range of construction segments. The business profile is further supported by strong project diversification across government and local authority construction and infrastructure projects, thus benefiting from a timely payment structure. Fitch expects the group to maintain its prudent financial discipline to sustain positive free cash flow (FCF) generation and to deleverage its balance sheet driven by improved profitability,” the agency said in a press release.

However, Fitch noted, “Kier's rating is mainly constrained by the lack of geographical diversification with its operations almost exclusively focused in the U.K., limited diversification of dividend streams and its moderate leverage.”

Fitch said it estimates the company's EBITDA leverage (Fitch-defined) to gradually dip to below 2x in 2025 from historically high levels in 2019-2020 and then fall even lower to below 1.5x in 2026-2027.

Moody’s rates NOVA notes Ba3

Moody’s Investors Service said it assigned a Ba3 rating to NOVA Chemicals Corp.'s upcoming $650 million of senior unsecured notes due 2030.

NOVA's Ba2 corporate family rating, Ba3 senior unsecured notes rating and Ba1 senior secured first-lien notes rating are unchanged, the agency said.

NOVA will use the notes to repay the $650 million in unsecured notes due in June.

The outlook is negative.

S&P gives NOVA rates B+

S&P said it assigned B+ issue-level and 5 recovery ratings to NOVA Chemicals Corp.'s planned $650 million of senior unsecured notes. The 5 recovery rating indicates modest (10%-30%; rounded estimate: 25%) recovery in a simulated default.

The BB+ issue-level and 1 recovery ratings on NOVA's outstanding senior secured notes are unchanged, S&P.

The company is expected to use the proceeds to redeem the remaining $650 million of its $1.05 billion senior unsecured notes due in June. “Concurrently, we assume NOVA will terminate the $500 million delayed-draw term loan facility that it recently obtained from banks in Abu Dhabi, the sole purpose of which was to refinance the 2024 notes.

“We view the transaction as credit neutral, accordingly our BB- issuer credit rating and negative outlook on NOVA are unchanged,” S&P said in a press release.

S&P rates Post Holdings notes BB

S&P said it assigned BB issue-level and 1 recovery ratings to Post Holdings Inc.'s planned $875 million of senior secured notes due 2032. The 1 recovery rating indicates very high (90%-100%; rounded estimate: 95%) recovery in default. Post also wants to upsize its revolving credit facility, increasing its commitment to $1 billion from $750 million, and extend its maturity to February 2029 from March 2025. The offering of the notes does not depend on the revolver transaction.

The ratings on the notes are the same as those on Post’s $1 billion revolver.

Post will use the proceeds to repay its $400 million first-lien term loan due April 2026 and $1.5 billion ($459 million outstanding) 5¾% notes due March 2027. The company will use anything left to cover fees and add cash to its balance sheet. “We expect the transaction will be largely leverage neutral. We will withdraw our issue-level ratings on the company's existing first-lien term loan and 5¾% notes after they are repaid,” S&P said in a press release.

The outlook is stable.

Moody’s gives B2 to Recess loan

Moody’s Investors Service said it gave a B2 rating to Recess Holdings Inc.’s planned $1.05 billion first-lien senior secured term loan due 2030.

Concurrently, the agency said it affirmed the B2 ratings on Recess and its outstanding first-lien senior secured term loan due 2027. Recess is also extending the expiration on the $125 million asset-based lending revolving credit facility by three years to September 2029.

Recess plans to use the new loan and $58 million in cash to repay its $640 million first-lien term loan and distribute $450 million to Court Square and other shareholders. The rest will go towards paying transaction-related fees.

“The transaction is credit negative because it increases the company's debt burden to fund a shareholder distribution and the step-up in interest expense of around $35 million-$40 million (Moody's estimates) will reduce free cash flow. Moody's expects debt to EBITDA will increase to around 4.5x pro forma for the transaction from 2.7x (Moody's adjusted for the last 12 months ended September 2023),” the agency said in a press release.

The outlook is stable.

S&P rates Recess loan B

S&P said it assigned a B issue-level and 3 recovery ratings to Recess Holdings Inc.’s (PlayCore) new $1.05 billion first-lien term loan due in January 2030. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 50%) recovery in default.

The agency also affirmed PlayCore’s B issuer rating.

PlayCore will use the proceeds to refinance its $640 million first-lien term loan and fund a distribution to private equity sponsor Court Square Capital Partners LP and company management.

The outlook is stable.

Moody’s rates Service Logic loan B2

Moody's Investors Service said it assigned a B2 rating to Service Logic Acquisition, Inc.'s $135 million senior secured first-lien revolving credit facility due 2027.

Service Logic's other ratings following the assignment of the new revolver and incremental term loan, including its B3 corporate family rating and the B2 rating on the company's outstanding first lien bank credit facilities including the term loan add-on, are unchanged, the agency said.

About $330 million in term loan proceeds and $38 million sponsor equity will be used to repay the company's higher-priced incremental term loan and add about $140 million cash to the balance sheet for future acquisitions. The company's $135 million revolver due 2027 will replace the $100 million facility due 2025.

"Service Logic's term loan add-on and sponsor equity provide liquidity for the company to execute its debt-funded acquisition strategy. While often increasing leverage, the company's acquisitions also improve scale and geographic diversity. We forecast debt to EBITDA to decline modestly in 2024 driven by increased profitability from market share gains," said Justin Remsen, a Moody's analyst, in a press release.

The outlook is unchanged at stable.

S&P rates Stena notes BB+

S&P said it assigned its BB+ issue-level and 2 recovery ratings to the $400 million of senior secured notes due 2031 to be issued by Stena AB through its subsidiary Stena International SA. The 2 recovery rating (rounded estimate: 75%) indicates substantial recovery in default.

The ratings are in line with those of Stena’s outstanding senior secured debt.

The company will use most of the proceeds to reduce drawings under secured credit facilities and fund any transaction-related fees and expenses.

The outlook is stable.

S&P hikes Trimark, rates loans B-

S&P said it raised its ratings on TMK Hawk Parent Corp. (Trimark) to B- from SD, selective default, and rated its new tranche A and tranche B first-lien term loans B- with 4 recovery ratings. The 4 recovery rating indicates average (30%-50%; rounded estimate: 30%) recovery in default.

“The upgrade reflects TMK Hawk's meaningfully reduced debt and cash interest burden. However, we expect the company's S&P Global Ratings-adjusted debt to EBITDA will remain elevated in the high-5x area over the next 12-24 months. The restructuring transaction resulted in a reduction of S&P Global Ratings-adjusted debt to about $570 million from $1.3 billion,” the agency said in a press release.

TMK Hawk’s capital structure now consists of a $270 million asset-based lending facility due July 2025 with $166 million outstanding, a $65 million first-lien term loan tranche A due June 2029, a $150 million first-lien term loan tranche B due June 2029, and a $92 million Holdco pay-in-kind (PIK)-only loan due 2031 that does not bear cash interest.

S&P said it estimates the company to deliver free cash flow of $30 million-$40 million over the next 12 months. “While increased food equipment demand across various business channels, opportune project timing, and greater chain sales are anticipated to drive revenue growth of about 12% to $2.4 billion in fiscal 2023, we expect that growth to decelerate to the mid-to-high single-digit area in fiscal 2024.”

The outlook is stable.

S&P drops Cano ratings to D

S&P said it downgraded its ratings for Cano Health Inc. and its senior secured term loan to D from CCC- and its senior unsecured notes to D from C.

“We downgraded Cano after it filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. This follows a deterioration in its profitability and cash flow due, in large part, to rising medical costs and the increase in short-term interest rates. We expect to reassess our ratings on the company and its new capital structure when it emerges from bankruptcy,” S&P said in a press release.

Moody’s hikes Foley Products

Moody's Investors Service said it upgraded Foley Products Co., LLC's corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD and the rating on the senior secured first-lien bank credit facility to B1 from B2.

The upgrade reflects Foley's strong profitability, which is expected to maintain robust with continued infrastructure demand and growth in residential end markets. Foley's profitability, in addition to some debt reduction, has supported a decline in leverage to below 2x for the last 12 months ending Sept. 30, 2023. Solid cash flow generation and execution of regional expansion plans further support the upgrade,” the agency said in a press release. The outlook is maintained at stable.

S&P lifts Equitable Holdings

S&P said it raised its issuer credit rating on Equitable Holdings Inc. to A- from BBB+.

“Our upgrade of EH is based on our view of the continued quality and stability of cash flows from nonregulated sources such as AllianceBernstein (rated A). Currently, EH derives about 30% of cash flows from AllianceBernstein and additional nonregulated cash flows from Equitable Advisors. As EH's business outside of insurance cash flows increases, regulated cash flows will constrain less of its income and dividend capacity,” S&P said in a press release.

The outlook is stable.

DBRS turns Artis trend to negative

DBRS said it changed the trend to negative from stable and confirmed the issuer rating and senior unsecured debentures rating of Artis Real Estate Investment Trust at BBB (low).

The weaker trend reflects the ongoing EBITDA interest coverage deterioration beyond the agency’s prior year expectation of 2.7 times (x) or above because of the REIT’s high proportion of variable-rate debt.

“Morningstar DBRS anticipates a modest improvement in the coverage in the medium term as the REIT continues to execute its business transformation plan through monetizing assets and using the proceeds to repay further variable rate debt. However, Morningstar DBRS notes that, given the increased variable rate debt in an elevated interest rate environment and an already weakened coverage ratio, Artis has less cushion for the current leverage at the given rating level.

“Morningstar DBRS has also revised its assessment of the REIT’s portfolio size lower as the REIT continues to shrink in size following the asset dispositions carried out in the last 12 months ended (LTM) Sept. 30, 2023,” the agency said in a press release.

Moody’s rates Starbucks notes Baa1

Moody's Investors Service said it assigned Baa1 ratings to Starbucks Corp.'s planned senior unsecured notes offering.

All other ratings are unchanged, including its Baa1 senior unsecured ratings, the agency said.

Starbucks will use the proceeds to repay at maturity all the principal amount of floating-rate senior notes due Feb. 14, yen-denominated senior notes due March 15, and for general corporate purposes.

The outlook remains unchanged at stable.

S&P assigns BBB+ to Starbucks notes

S&P said it assigned its BBB+ issue-level rating to Starbucks Corp.'s planned senior unsecured notes.

“All of our other ratings on Starbucks, including our BBB+ issuer credit rating and stable outlook, are unchanged,” S&P said in a press release.

The offering will be roughly leverage neutral because the company will use most of the proceeds to replace its recently matured notes and those maturing in the coming months, anything left will be used for general corporate purposes.

Moody’s gives Baa2 to Becton, Dickinson notes

Moody's Investors Service said it assigned Baa2 ratings to the new U.S. dollar and euro-denominated senior notes offering of Becton, Dickinson & Co.

The rating is in line with those on the company’s outstanding senior notes.

The proceeds will be used to repay debt and to cover associated fees and expenses.

The outlook remains stable.

S&P assigns Becton Dickinson notes BBB

S&P said it assigned its BBB issue-level rating to Becton Dickinson & Co.'s planned senior unsecured notes issuance. The company will sell notes in dollars and euros.

The rating is in line with those on the company’s outstanding senior unsecured notes.

Becton Dickinson will use the proceeds, with cash on hand, to refinance its $144 million of 3.785% notes due in May, $998 million of 3.363% notes due in June and $875 million of 3.734% notes due in December. It will also pay accrued interest, related premiums, fees, and expenses in connection with the transaction, with any remaining net proceeds to be used for general corporate purposes.

“We view the transaction as leverage neutral,” S&P said in a press release.

The outlook is stable.

Fitch rates Becton, Dickinson notes BBB

Fitch Ratings said it assigned a BBB rating to the senior unsecured notes being issued by Becton, Dickinson & Co.

The rating is the same as those on Becton, Dickinson’s outstanding senior unsecured notes.

“Fitch expects the issuance will be leverage neutral, with proceeds being used to refinance CY2024 maturities,” the agency said in a press release.

The outlook is stable.

S&P gives BBB+ to Cencora notes

S&P said it assigned its BBB+ issue-level rating to Cencora Inc.'s senior unsecured notes.

The rating is in line with those on Cencora’s outstanding senior unsecured notes.

The company plans to use the proceeds to redeem bonds maturing in 2024.

The outlook is stable.

Moody’s assigns Baa2 to Cencora notes

Moody's Investors Service said it assigned a Baa2 rating to Cencora, Inc.'s new senior unsecured notes.

There are no changes to the company's Baa2 senior unsecured rating, the agency said.

Moody's expects that Cencora will use the proceeds largely for repayment of $500 million of senior unsecured notes due in 2024.

The outlook is stable.

Fitch rates Cencora notes A-

Fitch Ratings said it rated Cencora, Inc.’s planned senior unsecured notes A-.

The rating is in line with the company’s revolvers and senior unsecured notes.

The company will use the proceeds to redeem Cencora's 3.4% senior notes due May 15 with anything left to be used for general corporate purposes.

The outlook is stable.

S&P assigns A- to Cigna notes

S&P said it assigned an A- rating to the Cigna Group's new senior unsecured notes, which it will issue in five-, seven-, 10-, and 30-year tranches.

The rating is the same as those on Cigna’s outstanding senior unsecured notes.

Cigna will use the proceeds for general corporate purposes, including the refinancing of 2024 maturities and toward tender offers.

The outlook is stable.

Fitch gives BBB+ to Cigna Group notes

Fitch Ratings said it assigned a BBB+ rating to the Cigna Group's new senior unsecured notes.

The rating is in line with those on Cigna’s outstanding senior unsecured notes.

Cigna will use the proceeds to provide consideration for cash tender offers for various outstanding senior notes, to prefund the repayment of debt maturing in March and June and for general corporate purposes, which may include repayment of other debt and the repurchase of common shares.

The outlook is stable.

Moody’s rates Cigna notes Baa1

Moody's Investors Service said it assigned a Baa1 senior unsecured debt rating to the Cigna Group's anticipated issuance of senior unsecured debt, due in 2029, 2031, 2034 and 2054.

The rating is in line with those on Cigna’s outstanding senior unsecured notes.

The proceeds will be used to pay for the $2.25 billion cash tender offers, with the rest used to fund the repayment of the company's $500 million notes maturing in March, any non-tendered notes maturing in June and for general corporate purposes, which may include repayment of indebtedness and repurchases of shares of common stock.

The outlook is stable.

S&P rates Constellation Software BBB

S&P said it assigned BBB ratings to Constellation Software Inc. and its planned unsecured notes to be sold in five- and 10-year tranches. The outlook is stable.

“With Constellation's operations in multiple distinct verticals (more than 100), we view the company's diversity as a significant advantage. No customer generates more than 2% of revenue, and with maintenance and recurring revenue close to 70% of consolidated revenue, we consider revenue visibility and stability good. Given the company's essential software offerings to customers, customer turnover has historically been low with retention rates of more than 90%,” S&P said in a press release.

The agency added, “We believe that Constellation will continue to outspend free cash flow to make acquisitions, but will manage leverage close to 1.5x. Our assessment of Constellation's modest financial risk profile primarily reflects the company's net leverage of 1.7x (S&P Global Ratings-adjusted) based on last 12 months EBITDA ended Sept. 30, 2023, and our forecast that Constellation will continue to maintain credit ratios close to 1.5x through 2025.”

S&P said it expects the company to generate about C$2 billion of FOCF in 2024 and 2025, acquisitions will be more than FOCF, and Constellation will fund the shortfall with debt.

Moody’s assigns Fortive notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Fortive Corp.'s new senior unsecured notes issuance.

“The issuance does not impact other ratings of Fortive, including the existing Baa1 senior unsecured and P-2 short-term commercial paper ratings,” the agency said in a press release.

The proceeds will be used to refinance debt and for general corporate purposes. “Moody's expects the transaction to be largely leverage neutral,” the agency.

The outlook is stable.

S&P gives BBB to Fortive notes

S&P said it assigned its BBB issue-level rating to Fortive Corp.'s planned benchmark-sized offering.

The rating is in line with those on Fortive’s outstanding senior unsecured notes.

The company intends to use the proceeds to fund the repayment of its commercial paper and term loans and will use anything left for general corporate purposes.

The outlook is stable.

Fitch gives Constellation Software BBB+

Fitch Ratings said it gave BBB+ ratings to Constellation Software Inc., its new unsecured notes and its new unsecured revolver. The outlook is stable.

“Constellation's performance since the start of the pandemic has demonstrated the resilience of its business model. The company posted a strong recovery in organic growth where revenues grew by 7% in 2021 after a modest 3% decline in 2020. Organic revenue grew 3% in 2022 and has further grown by 5% as of YTD September 2023.

“Despite tough economic conditions, Fitch expects the impact on revenue growth to remain moderate supported by the high recurring nature of its maintenance revenue segment. Fitch also assumes EBITDA margins will remain in mid-20s levels,” the agency said in a press release.

Constellation will use the notes’ proceeds to repay the outstanding revolver, for acquisitions and general corporate purposes. Additionally, the newly issued unsecured revolving credit facility will be used to replace/refinance the outstanding $840 million senior secured revolving credit facility.

Fitch rates Surpique, loan CCC-

Fitch said it assigned Surpique Acquisition Ltd., an entity ultimately owned by South-Korean ecommerce group Coupang, Inc. and funds managed and/or advised by Greenoaks Capital Partners LLC, which acquired Farfetch Ltd.'s business, a CCC- issuer default rating.

The agency also affirmed its senior secured term loan rating at CCC- but revised the recovery rating to RR4 from RR3. The loan was borrowed by Farfetch US Holdings, Inc.

“Surpique's CCC- rating reflects its weak liquidity position as we believe the business it acquired is de-facto insolvent but assumes a one-notch uplift for its new strategic investor Coupang. We assume that Surpique's available liquidity may not be sufficient to cover business needs in the next 12 months. However, the uplift reflects our assumption of moderate strategic importance of the acquired assets for Coupang, committed equity support and potential further cash support to turn the business around once a new business plan has been developed,” the agency said in a press release.

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