As usual, we have a week’s worth of downgrades on the debt of private equity-backed companies from Standard and Poor’s and Moody’s. (Reminder: We’d call it an upgrade wrap-up if the ratings agencies ever issued on. In eight weeks of doing this column, we’ve seen one.)
This week there are eight, including an unsolicited rating, which we welcome as a step in the right direction for the previously “censored” ratings agencies. Besides, as we pointed out last week, too many companies are asking the agencies to withdraw their ratings just because they don’t like getting downgraded.
Bain Capital and GS Capital were this week’s repeat offenders.
Company: Harman International Industries
Sponsor: GS Capital and KKR
Downgrade: Moody’s lowered the comapany’s corporate family and probability of default ratings to B1 from Ba2.
Highlights: “The B1 Corporate Family Rating reflects further expected deterioration of Harman’s operating performance and resulting credit metrics over the intermediate term from the significant reductions in demand for the company’s products.”