Weekly Downgrade Wrap-Up
As usual, we have a weeks worth of ratings actions on the debt of buyout-backed companies from ratings agencies Moody’s and Standard & Poor’s. Dollar General got upgraded, CD&R's new deal got downgraded, and things are still ugly at Hexion. Company: Dollar General Corp. Sponsor: KKR Action: S&P placed its ratings, including the 'B+' corporate credit rating, on the company on CreditWatch with positive implications. Highlights: “The CreditWatch placement follows Dollar General's S-1 filing, under which it plans to sell $750 million in common stock. Dollar General plans to use a portion of the proceeds to repurchase a mix of its existing subordinated and senior unsecured notes, subject to a 35% equity clawback provision under these indentures. In addition to the common stock offering, Dollar General plans to pay a $200 million dividend to its equity sponsors with cash from operations.“
