PE Debt Watch (Upgrades and Downgrades)
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Moody’s Investors Service and Standard & Poor’s. This week the agencies focused on Sagittarius Restaurants, Securus Technologies, American Tire Distributors and Integra Telecom. Company: Sagittarius Restaurants LLC Sponsor: Charlesbank Capital Partners Action: S&P said it lowered its corporate credit rating on the company to 'CC' from 'CCC'. Highlights: This action comes after the company disclosed that its subordinated lender agreed to reduce its claim substantially below face value. "We view this as tantamount to a default, given the current distressed financial condition of the company and since the investor is receiving less than the original promise of the original security," said Standard & Poor's credit analyst Charles Pinson-Rose.
