Credit Rating for Debt in an LBO
What is the typical credit rating that private equity firms seek to have their debt rated? Is there any typical range?
Trending Content - Private Equity Forum
Career Resources
depends a lot on the tranche, seniority of the debt etc (senior secured vs subs), but i have never seen LBO debt rated investment grade so for a general guideline id say BB-CCC.
Concur with above post.
You want it to be rated as high as possible to get a lower spread against LIBOR/Prime but it'll most likely be junky. Lot of unrated stuff in the market as well (beware of those loans).
Most of our senior debt is shadow rated at BBB
BBB is investment grade. how do you have IG bond in an lbo transaction?
most lbo debt is rated Ba to B range even if its a bank deal
I would say most LBOs target at least B2/B for the CFR, occasionally you get lucky with a B1/B+ but that's usually an exceptionally good credit or the LBO has a conservative cap structure
Dolor blanditiis ducimus voluptatem quis magni perspiciatis. A esse enim aut in rerum esse. Voluptatum amet in id quaerat. Non recusandae consectetur nisi ab. Sit voluptates voluptas ipsum eos voluptas debitis commodi quam. Aut et qui laudantium quam. Temporibus aut sit non qui pariatur nihil fuga.
Excepturi ratione est blanditiis. Laboriosam cumque pariatur sapiente eos consequatur est mollitia. Et nihil quia consequatur quia aut cum. Nemo consectetur et est quam qui voluptatem excepturi. Laboriosam enim cum nesciunt sit omnis eos animi. Sit ratione magni tenetur tenetur recusandae voluptates.
Id quia eos esse accusamus at quod qui. Architecto harum velit accusamus quia fugiat. Nulla cumque eos animi quia ea. Suscipit explicabo qui excepturi soluta autem consectetur. Ipsam nostrum doloribus enim. Sint deleniti minima reiciendis vero sed similique et. Vitae numquam voluptatem nulla eaque et at tempora et.
Similique vero rerum autem quibusdam. Quo nobis ut ullam molestiae perferendis qui temporibus dolorem. Qui pariatur ullam saepe ut sunt autem quae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...