Fitch lowers Viridian

Fitch Ratings said it has downgraded Viridian Group Investments Ltd.'s long-term issuer default rating to B+ from BB- and removed it from rating watch negative following the completion of its refinancing exercise.

Fitch said it has also assigned Viridian Group Fundco II Ltd.'s €600 million of senior secured notes a final rating of B+ and Viridian Group Ltd.'s and Viridian Power and Energy Holdings Ltd.'s £225 million super senior revolving credit facility a final senior secured rating of BB+.

The outlook on the issuer default rating is stable.

The €600 million senior secured notes issue proceeds were used to redeem the €313 million and $250 million senior secured notes due 2017 and drawings under the revolver. Proceeds were also used to pay down £64 million of the subordinated shareholder loan, which is currently classified as an equity-like PIK instrument by Fitch, the agency said.

The downgrade of Viridian's issuer default rating is driven by the completed refinancing, which has resulted in an increase of forecast funds from operations-adjusted net leverage to 4.7x in FY15 and around 4.3x on average for FY15-FY17.

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