Moody's affirms IAP Worldwide loans

Moody's Investors Service said it affirmed the ratings of the senior secured first- and second-lien bank credit facilities of IAP Worldwide Services, Inc.'s at Caa2, LGD2, 20% and Ca, LGD 3 40% respectively.

The company's corporate family rating was also affirmed at Caa3, but the probability of default rating was lowered to D from Caa3, the agency said, noting that the rating actions follow the recent amendment and restatement of the company's first- and second-lien credit facilities as part of the company's financial restructuring.

Certain features of the amendment, specifically with respect to the inclusion of an option to make payment-in-kind interest payments are deemed to constitute a distressed restructuring under Moody's assessment and result in the change of the probability of default rating to D.

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