Moody’s trims FINThrive

Moody's Investors Service said it downgraded FINThrive Software Intermediate Holdings, Inc.'s probability of default rating to Caa2-PD and appended the PDR with a limited default (/LD) designation, changing it to Caa2-PD/LD from Caa1-PD. Moody’s will remove the /LD designation after three business days.

The agency also lowered the corporate family rating to Caa2 from Caa1 and the first-lien senior secured instrument ratings to Caa1 from B3 and the second-lien senior secured instrument rating to Ca from Caa3.

“The /LD designation reflects Moody's view that the cumulative effect of FINThrive's second-lien term loan repurchases constitutes a limited default within the company's capital structure. Moody's regards the repurchases as a distressed exchange because they imply substantial economic losses to lenders and help the company alleviate a potentially untenable capital structure,” the agency said in a press release.

Moody’s also noted FINThrive’s debt/EBITDA leverage of more than 12x for the last 12 months ended Sept. 30.

The outlook remains negative.

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