Fitch cuts Anthology

Fitch Ratings said it downgraded Astra Acquisition Corp.'s (Anthology) long-term issuer default rating to B- from B. The agency, however, affirmed the company's senior secured credit facility and first-lien term loan at BB- and updated the recovery rating to RR1 from RR2 due to the repayment of $525 million of first-lien debt. Fitch also downgraded Anthology’s parent, Astra Intermediate Holding Corp.'s IDR to B- from B.

“The downgrade of the IDRs reflects Fitch's concerns about significant leverage and weak interest coverage. The rating also reflects Astra's modestly declining retention rates as it operates in a highly competitive environment. The company's credit profile benefits from significant recurring revenues, adequate liquidity over the rating horizon and from having no near-term maturities,” the agency said in a statement.

Though debt is down, Fitch noted it still estimates leverage to be well above 8x.

The outlook for both companies is negative.

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