Moody’s adds LD to Polaris rating

Moody’s Investors Service said it appended a limited default designation (/LD) to Polaris Newco, LLC’s probability of default rating. Concurrently, the agency affirmed the Ba3 rating on Polaris' super-priority senior secured revolver rating and the B2 rating on the company's multicurrency first-lien senior secured term loans.

“The /LD designation follows the change in terms under the company's recently amended second-lien term loan (unrated) that allows for interest payments to be paid-in-kind (PIK) through August of 2023. The /LD designation reflects Moody's view that the conversion of cash interest payments represents a default because the payments were not made on the original due dates. Moody's will remove the /LD designation from the company's PDR in approximately three business days,” the agency said in a press release.

The outlook is stable.

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