This Week in Portfolio Company Debt
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Standard & Poor’s Ratings Services and Moody’s Investor Service. This week its bad news again, with two bankruptcies and a debt exchange. Even the upgrade in Vitamin Shoppe's debt isn't great news--the company went public but not at the price it was hoping for. Moody's warned about the company's small size, competitive and fragmented market, and narrow product focus. Company: Capmark Financial Group Inc. Sponsor: Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC and Goldman Sachs Capital Partners are sponsors. Ratings Action: S&P lowered its ratings on Capmark Financial Group Inc., including the local currency counterparty credit rating on the company, to 'D' from 'CC'. Highlights: “We had expected the bankruptcy filing since September 2009, when Capmark Financial Group entered into an asset put agreement that gave it the right to sell its North American servicing and mortgage-banking businesses. We expect the firm to sell these, and possibly other, assets, through bankruptcy proceedings.”
