Moody's ups Anthology first-lien rating

Moody's Investors Service said it upgraded Astra Acquisition Corp.'s (Anthology) first-lien senior secured credit facility rating to B1 from B2. The agency also affirmed Astra Intermediate Holdings Corp.'s corporate family rating and probability of default rating at B3 and B3-PD, respectively. The outlook was changed to negative from stable.

“The upgrade of Anthology's first-lien senior secured credit facility (revolver and term loan) rating to B1 from B2 reflects greater protection afforded to these creditors, as a result of the change in the company's capital structure following assets divestitures and repayment of first-lien term loan. The B1 rating on the company's first-lien term loan and revolver is two notches higher than the CFR of B3, reflecting the higher proportion of junior debt (senior secured second-lien term loan and unsecured obligations) relative to the rated first-lien debt in Anthology's pro forma capital structure,” Moody’s said in a press release.

The negative outlook, however, reflects the expectation Astra will be challenged to post positive free cash flow and reduce debt-to-EBITDA leverage to more sustainable levels over the next 12-18 months, the agency said.

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