Moody's downgrades Imagina

Moody's Investors Service said it downgraded to Caa2 from Caa1 the corporate family rating and to Ca-PD/LD from Caa1-PD the probability of default rating of Joye Media SL the parent entity above the restricted group that owns Imagina Media Audiovisual, SL.

Moody's also appended the PDR with the limited default or /LD designation following the company's decision to miss the €20 million interest payment and €24 million principal payment due on 30 June 2021. “Moody's understands that there is no grace period for the payment of interest or principal in the documentation of the senior facilities agreement,” the agency said in a press release.

Concurrently, Moody's lowered to Caa1 from B3 the ratings of the €300 million guaranteed amortizing senior secured first lien term loan due in 2024, the €380 million guaranteed senior secured first-lien term loan due in 2025 and the €60 million guaranteed senior secured revolving credit facility due in 2024 issued by Invictus Media SLU (Invictus) and Imagina. Moody's also downgraded to C from Caa3 the rating of the €180 million guaranteed senior secured second-lien facility due in 2025 issued by Invictus and Imagina. The outlook on all ratings remains negative.

"The downgrades follow the missed interest and principal payment, and reflect our expectation that a debt restructuring is almost unavoidable, while recovery rates will be somewhat lower than initially anticipated," said Víctor García Capdevila, a Moody's assistant vice president and lead analyst for Joye, in a press release.

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