Weekly Downgrade Wrap-Up

Per usual, we have a week’s worth of ratings actions on buyout-backed companies from Standard & Poor’s and Moody’s Investor Services. Not too much action, with just a trio of downgrades and one rating on a new issuance:

Company: EuroFresh Inc.
Sponsors: Bruckmann Rosser Sherrill & Co., Banc of America Capital Investors
Downgrade: S&P withdrew its ratings
Comment: S&P: “Withdrew its ‘D’ corporate credit rating and ‘D’ issue ratings on Eurofresh’s $170 million 11.5% senior notes due 2013 and $44.174 million step up senior subdiscount notes due 2014 because EuroFresh filed for Chapter 11 bankruptcy protection on April 21, 2009.”

Company: Univision Communications Inc.
Sponsor: Madison Dearborn Partners, Providence Equity Partners, TPG, Thomas H. Lee Partners
Rating: Moody’s assigned a B2 rating to Univision’s proposed $500 million senior secured notes due 2014.
Comment: Univision will use proceeds from the proposed offering to fund the repurchase of its 7.85% $500 million senior secured notes due July 15, 2011. A tender offer for the 2011 note repurchase expires on July 8, 2009 and is contingent upon the sale of the proposed notes, according to Moody’s.

Company: TSI Acquisition LLC
Sponsors: Carlyle Group, Riverstone Holdings
Downgrade: Moody’s downgraded TSI’s corporate family rating to ‘Caa1’ from ‘B3’
and its probability of default rating to ‘Caa1’ from ‘B3’.
Comment: The issue-level ratings action follows Six Flags’ Chapter 11 filing and related negotiated restructuring plan, which would reduce the company’s debt by roughly $1.8 billion and eliminate its preferred stock. Six Flags had total debt of $2.3 billion and $308 million of preferred stock as of March 31, 2009, according to S&P.

Company: Veyance Technologies Inc.
Sponsors: Carlyle Group
Downgrade: Moody’s lowered its ratings of Veyance’s corporate family and probability of default ratings to ‘Caa1’ from ‘B3’.
Comment: The downgrade incorporates Moody’s view that Veyance has a highly leveraged capital structure, and that the company’s end markets have experienced significant contraction due to the continued slowdown in the global economy. Veyance’s leverage “is driven primarily by about $1.1 billion of debt utilized in the leveraged acquisition of Veyance by The Carlyle Group,” not including “several follow-on acquisitions that involved additional debt,” Moody’s said.

Previous Weeks:
Weekly Downgrade Report 17
Weekly Downgrade Report 16
Weekly Downgrade Report 15
Weekly Downgrade Report 14
Weekly Downgrade Report 13
Weekly Downgrade Report 12
Weekly Downgrade Report 11
Weekly Downgrade Report 10
Weekly Downgrade Report 9
Weekly Downgrade Report 8
Weekly Downgrade Report 7
Weekly Downgrade Report 6
Weekly Downgrade Report 5
Weekly Downgrade Report 4
Weekly Downgrade Report 3
Weekly Downgrade Report 2
Weekly Downgrade Report 1