Moody’s downgrades from Caa1 to Caa3
Sell PGIM 10.5% due 01/17 at 92.9 or a Z-spread of 939bps
On Friday, Moody’s downgraded Seat Pagine: the senior secured notes were downgraded from B3 to Caa1, Lighthouse from Caa2 to Ca, and the corporate family rating from Caa1 to Caa3. This follows the company’s announcement that it had hired advisors for an upcoming debt restructuring during the last quarterly update on May 10th. This announcement was widely expected, and we discussed our assessment of the various options open to Seat in our Initiation Report dated February 22nd. As such, we don’t expect much direct impact from Moody’s downgrade. We maintain our “Very High Risk” assessment on the LARA scale.