Moody’s lowers Janus loan to B2

Moody's Investors Service said it downgraded Janus International Group, LLC's first-lien senior secured term loan due 2025 to B2 from B1 following company's recent announcement that it is upsizing this term loan to $470 million from $440 million.

Concurrently, the company is reducing its second-lien senior secured term loan due 2026 by a like amount to $100 million from $130 million. The rating assigned to the second-lien term loan remains Caa1.

The debt reallocation does not impact Janus' B2 corporate family rating or B2-PD probability of default rating.

The outlook is stable.

Moody’s said the downgrade of the first-lien term loan to B2 from B1 results from the large amount of first-lien debt, now $470 million, representing preponderance of debt in Janus' capital structure.

Additionally, reduction in second-lien debt, currently $100 million, lowers the amount of first-loss absorption in a recovery scenario relative to the first-lien term loan and further supports the downgrade of the rating assigned to the first-lien term loan, the agency explained.

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