Moody’s cuts CCC loan

Moody’s Investors Service said it downgraded CCC Information Services Inc.’s first-lien senior secured instrument rating from B2 to B3. The agency also affirmed the company’s B3 corporate family rating and B3-PD probability of default rating and affirmed CCC’s second-lien senior secured Caa2 rating. The outlook remains stable.

These rating actions follow the company’s announcement in February it will issue an incremental $250 million first-lien term loan, as an add-on to the current facility.

All the proceeds will be used to repay the existing second-lien term loan, which will be reduced from $375 million to $125 million. The proposed $250 million incremental first-lien term loan and proportional reduction in subordinated debt reduce the loss cushion provided by the second-lien debt in the event of a default, resulting in the first-lien instrument rating downgrade from B2 to B3, the agency said.

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