Moody's cuts Caldic facilities to B2

Moody's Investors Service said it downgraded the senior secured first-lien bank credit facilities of Pearls (Netherlands) BidCo BV (Caldic BV) to B2 from B1 and assigned a B2 rating to the $320 million equivalent senior secured first-lien term loan B2.

The agency said it will use the new loan mostly to repay the unrated second-lien facilities.

“Today's rating action reflects that first-lien lenders will no longer benefit from a meaningful loss absorption cushion, which had previously supported a one-notch difference between the Caldic's CFR and the senior secured bank credit facilities, after the expected repayment of the second-lien facilities,” Moody’s said in a press release.

The outlook is negative.

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