Weekly Downgrade Wrap-Up: Where Does Portfolio Company Debt Stand?
As usual, we have a week’s worth of ratings actions on buyout-backed companies from ratings agencies Standard & Poor’s and Moody’s Investor Services. This week there were two appearances by downgrade regular Apollo Management, and two from GS Capital Partners. Bruckmann Rosser Sherrill’s Lazy Days RV saw its ratings withdrawn for unspecified reasons (although such a move usually occurs at the company’s request). Lastly, remember that Six Flags, which filed for Chapter 11 bankruptcy protection, is minority owned by Generation Partners. So there’s that. Company: USI Holding Corp Sponsor: GS Capital Partners Downgrade: S&P has assigned a 'B-' rating to the company’s proposed $117 million senior secured term loan and downgraded its existing senior secured credit one notch to 'B-'. Highlights: “Our expectations for 2009 incorporated into the current rating level are that the company will have positive cash flow and will be able to meet its restrictive covenants in the near to medium term.”
