Weekly Downgrade Wrap-Up

Per usual, we have a week’s worth of ratings actions on LBO-backed companies from ratings agencies Standard & Poor’s and Moody’s Investor Services. It’s the third light collection in a row — the past two weeks have only see ratings actions on five companies total; this week there are three.

Company: Energy Future Holdings Corp.
Sponsor: GS Capital, KKR, Morgan Stanley Private Equity, TPG, Citigroup Private Equity are sponsors.
Ratings Action: Moody’s downgraded the company’s corporate family rating and probability of default rating to Caa1 from B3.
Highlights: The rating action reflects the rating agency’s view that the capital structure is untenable and will likely prompt the company to pursue some form of restructuring activity. “EFH’s longer-term fundamentals remain weak. Fundamental concerns include: the magnitude of its debt ($44 billion) and significant looming maturities in 2014 (approximately $23 billion).”

Company: Titan Petrochemicals Group Limited
Sponsor: Warburg Pincus
Ratings Action: Moody’s downgraded the company’s corporate family rating to Caa3 from Caa1 and its senior unsecured bond rating to Ca from Caa2.
Highlights: This action follows Titan’s announcement that it has appointed Goldman Sachs as its advisor in connection with a strategic review of its capital structure. “(This) highlights the seriousness of its financial difficulties and the tightness of its liquidity position,” says Peter Choy, a Moody’s Vice President and Senior Credit Officer.

Company: Cooper-Standard Automotive Inc.
Sponsor: Cypress Group and GS Capital
Ratings Action: Moody’s withdrew its ratings after the company filed for bankruptcy protection.

Previous Weeks:

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Weekly Downgrade Wrap-Up 22
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Weekly Downgrade Wrap-Up 20
Weekly Downgrade Report 19
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Weekly Downgrade Report 1