Moody’s cuts BroadStreet Partners

Moody's Investors Service said it downgraded BroadStreet Partners, Inc.’s corporate family rating to B3 from B2, and probability of default rating to B3-PD from B2-PD. The agency also lowered BroadStreet's senior unsecured note rating to Caa2 from Caa1.

“The downgrade reflects BroadStreet's persistent financial leverage, which is likely to remain high as the company pursues its acquisition strategy. In the same action, Moody's affirmed BroadStreet's first-lien credit facility ratings at B1,” the agency said in a press release.

BroadStreet raised a $332.5 million incremental first-lien term loan and plans to sell $325 million of incremental senior unsecured notes to fund a new core agency partner and pay related fees and expenses.

The agency changed BroadStreet’s outlook to stable from negative. Moody’s noted it expects BroadStreet to lower its leverage over the next 12-18 months.

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