Moody’s cuts B&B Hotels first-lien loans

Moody’s Investors Service said it downgraded B&B Hotels’ first-lien revolver and term loans to Caa1 from B3 and assigned a Caa1 rating to its new €100 million first-lien senior secured term loan B4. The agency affirmed the Caa3 rating on the €155 million second-lien senior secured term loan.

B&B is a subsidiary of Casper MidCo SAS. The loans are borrowed by Casper BidCo SAS. Concurrently, Moody’s affirmed Casper MidCo’s Caa1 corporate family rating and Caa1-PD probability of default rating.

“The downgrade of the rating of the existing TLB and the RCF, and the Caa1 rating for the new TL-B4 reflects a lower relative amount of loss absorption by the second-lien TLB given the increased first-lien debt amount and additional state loans on the operating entity levels.

The outlook is negative.

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