As usual, we have a week’s worth of ratings actions (mostly downgrades) on the debt of LBO-backed companies from ratings agencies S&P and Moody’s. This week was obviously slow on account of the holiday, with only two companies getting ratings changes. Moody’s has doubts about whether GTCR’s Graceway Pharmaceuticals will get its drug Aldara will be approved on schedule. Meanwhile S&P did the obligatory ‘SD’ for its out-of-court debt-equity swap.
Company: Graceway Pharmaceuticals
Sponsor: GTCR Golder Rauner LLC
Action: Moody’s lowered the company’s corporate family rating to Caa1 from B3 and the probability of default rating (PDR) to Caa1 from B3.
Highlights: The ratings downgrade primarily reflects new uncertainties related to whether Graceway’s life cycle management plans for Aldara will be successful based on lack of approval for Graceway’s new lower-dose version.
Company: Integra Telecom
Sponsor: Banc of America Capital Investors and Warburg Pincus
Action: S&P lowered its corporate credit rating on the company to ‘SD’ following the completion of its out-of-court debt-for-equity recapitalization plan.
Highlights: We expect to raise the corporate credit rating to ‘CCC+’ with a developing outlook following the completion of our review of Integra’s revised capital structure.