Moody's dips Driven Holdings

Moody's Investors Service said it downgraded Driven Holdings, LLC's $500 million senior secured term loan and $300 million revolving credit facility ratings to B3 from B2. The agency also trimmed Driven’s corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD and the speculative grade liquidity rating to SGL-2 from SGL-1.

“The downgrade reflects higher than expected leverage with Moody's lease-adjusted LTM debt to EBITDA as of Q3 2022 of about 8.3x (pro forma for the $365 million securitization issuance in October 2022 and the revolver paydown of $300 million) which is well above the previous downgrade trigger of 6.75x. Including the company's estimate for LTM acquired EBITDA, Moody's lease-adjusted debt-to-EBITDA of about 7.6x is still above the downgrade trigger,” Moody’s said in a press release.

The outlook remains stable.

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