S&P nicks Dawn Acquisitions loans

S&P said it lowered its issue-level rating on Dawn Acquisitions LLC's senior secured loans to CCC, in line with its issuer credit rating on the company, from B- and revised the recovery rating on the debt to 3 from 1. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“We lowered the rating to reflect ownership's decision to move multiple unprofitable data centers (three owned properties and 15 leased facilities) outside of the credit group to an affiliate of Dawn, where they will be managed independently by a shared parent company. There is no downstream parent guarantee from the shared parent company to Dawn. As such, Dawn's creditors will no longer have recourse to any recovery value from the transitioned assets,” S&P said in a press release.

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