Moody's eyes Arvos for downgrade

Moody's Investors Service said it placed on the review for downgrade the B3 corporate family rating and the B3-PD probability of default rating of Arvos Midco Sarl. Concurrently, Moody's placed under review for downgrade the B3 ratings of the first-lien senior secured term loan B and the senior secured revolving credit facility of Arvos Bidco Sarl. The outlook has been changed to ratings under review from negative.

“The review for downgrade reflects the company's weak operating results, high financial leverage and increasing refinancing risks, with RCF and term loans coming due in May 2021 and August 2021, respectively,” the agency said in a press release.

Moody's said the company is in talks with lenders to extend the maturity of its revolver and term loans.

“The review will focus on the outcome of these discussions as well as on the terms of any debt agreement amendment. At this point, Moody's views that an agreement is likely to be reached in the next 30 days. Failure to extend the maturities of its debt agreements within this timeframe will result in a downward pressure on its ratings,” the agency said.

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