Moody's ups Vector notes, outlook negative

Moody's Investors Service said it affirmed the B2 corporate family and probability of default ratings of Vector Group Ltd. and revised the outlook to negative from stable.

The change to a negative outlook reflects Moody's expectation that leverage will remain above 5 times over the next 12 to 18 months due to its recent issuance of $230 million in unrated subordinated convertible notes.

Moody's also upgraded the rating of the company's $415 million in senior secured notes to Ba3 from B1 due to the higher proportion of unguaranteed, unsecured convertible debt in the company's capital structure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.