As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Moody’s Investor Service. This week we have just one downgrade, possibly because it is a short week (tomorrow is a holiday). Even though Moody’s downgraded the debt of Central Parking, backed by Kohlberg & Co. and Versa Capital Management, the ratings agency said is expects liquidity to remain adequate for the company’s 6x leverage level.
Company: Central Parking
Sponsor: Kohlberg & Co. LLC and Versa Capital Management
Action: Moody’s downgraded the company’s corporate family rating and probability of default rating to B3 from B2.
Highlight: “This rating action reflects revenue and operating results that continue to trend below expectations, largely a result of the negative impact that high unemployment rates have on the demand for parking. Moody’s does not expect unemployment in the US to rebound materially over the medium term, and cost cutting and operational initiatives undertaken by management have only partly offset negative ‘same store’ volume trends in CPC’s leased properties.”