Moody’s downgrades Ultra

Moody's Investors Service said it downgraded the corporate family rating of Cobham Ultra SunCo Sarl (Ultra) to B3 from B2 and its probability of default rating to B3-PD from B2-PD. Concurrently, the agency pared to B2 from B1 the ratings on the $883.5 million and €450 million senior secured first-lien term loan B tranches and the pari passu-ranking £190 million senior secured first lien revolving credit facility borrowed by Cobham Ultra SeniorCo Sarl.

“Despite strong growth prospects of at least 10% for both revenue and EBITDA, Moody's expects that Ultra's gross debt/EBITDA (as adjusted by Moody's) will remain elevated and not commensurate with a B2 rating in the next 12 to 18 months. The rating agency calculates that adjusted leverage was around 9x (7.7x before all one-off items) as of June 30, 2023, and it forecasts that it will only decline to a range of 7x-7.5x by the end of 2024,” the agency said in a press release.

The outlook for both entities remains stable.

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