Moody's downgrades HireRight

Moody's Ratings said it downgraded HireRight Holdings Corp.'s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD. The agency also lowered the backed senior secured first-lien credit facility ratings issued under HireRight's Genuine Financial Holdings, LLC subsidiary to B3 from B2. The company's speculative grade liquidity rating is unchanged at SGL-1.

The agency said it also changed the outlook to stable from negative for both entities.

“Today's rating and outlook actions reflect the addition of $50 million in term loan borrowings to HireRight's previously disclosed debt-funded privatization transaction to finance a $50 million one-time dividend distribution to private equity sponsors,” Moody’s said in a press release.

The total borrowings to finance the dividend and privatization will boost the term loan to $1.05 billion and raise the company's debt to EBITDA by about 1.8x to nearly 6.5x as of Dec. 31, (Moody's adjusted and pro forma for $300 million incremental term loan), adding credit risk and augmenting existing governance concerns, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.