Research Update: PHM Netherlands Midco B.V. Upgraded To 'CCC+' From 'SD'; Outlook Negative

We reassessed PHM Netherlands Midco B.V.'s (doing business as Loparex) credit profile following its distressed exchange and believe its capital structure is unsustainable. Therefore, we raised our issuer credit rating to 'CCC+' from 'SD' (selective default). We assigned our 'B' issue-level rating and '1' recovery rating to Loparex's new first-out ($175 million) debt facility, 'CCC+' issue-level rating and '3' recovery rating to the new second-out ($280 million) debt facility, and 'CCC-' rating and '6' recovery rating to the new third-out ($203 million) debt facility. We also raised our ratings on the existing first-lien term loans to 'CCC-' from 'D' and affirmed our 'CCC-' rating on the second-lien term loan. The negative outlook reflects our view that continued demand weakness could

...- We reassessed PHM Netherlands Midco B.V.'s (doing business as Loparex) credit profile following its distressed exchange and believe its capital structure is unsustainable. - Therefore, we raised our issuer credit rating to '###+' from '##' (selective default). - We assigned our 'B' issue-level rating and '1' recovery rating to Loparex's new first-out ($175 million) debt facility, '###+' issue-level rating and '3' recovery rating to the new second-out ($280 million) debt facility, and '###-' rating and '6' recovery rating to the new third-out ($203 million) debt facility. - We also raised our ratings on the existing first-lien term loans to '###-' from 'D' and affirmed our '###-' rating on the second-lien term loan. - The negative outlook reflects our view that continued demand weakness could weigh on Loparex's cash flows causing its liquidity cushion to narrow and keep its capital structure unsustainable....

Research Update