Moody's downgrades IRIS

Moody's Investors Service said it downgraded IRIS Debtco Ltd.'s corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD. Concurrently, Moody's trimmed to B3 from B2 the instrument rating on the backed senior secured term loan B, backed senior secured acquisition capex facility and backed senior secured revolving credit facility held by IRIS Bidco Ltd.

IRIS plans to secure a £75 million add-on term loan, fungible into the existing £670 million backed senior secured term loan B. The proceeds will be used to fully repay £40 million under the company's revolver, add cash to the balance sheet and pay associated fees and expenses.

"Today's rating action reflects the significant increase in IRIS' leverage on the back of the recently completed debt-funded acquisitions, leading to a pro forma Moody's-adjusted leverage of around 8x," said Luigi Bucci, Moody's lead analyst for IRIS, in a press release.

"Current leverage levels are now higher than at the time of the initial LBO in 2018, flagging a consistently aggressive financial policy for the company," added Bucci.

The outlook remains stable.

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