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Moody's upgrades Audatex's outlook

Friday, February 13, 2009 - 00:00



Moody's Investors Service affirmed the Ba3 Corporate Family Rating of Audatex Holdings LLC and changed the rating outlook to positive from stable, according to Reuters.

"The positive outlook anticipates modest profit growth over the next year driven by good secular growth trends in Europe and developing markets,” says Lenny Ajzenman, senior credit officer. “The ratings reflect the company's track record of revenue and earnings growth, leading market positions in Europe and the U.S., and strong credit metrics for the Ba3 rating category.”

The ratings are constrained by the company's dependence on a group of large property and casualty insurance carriers for a significant portion of revenues, concentration of revenues in estimation and workflow software products, which are subject to technology risks, and concern that pricing pressures could intensify in a weakening economy.

Moody's affirmed the following ratings of Audatex North America, an indirect wholly owned subsidiary of Audatex Holdings and a holding company for the North American operating subsidiaries: $25 million First Lien Revolving Credit Facility due 2012, Ba3 (to LGD 3, 45 percent from LGD 3, 47 percent); $217.6 million First Lien Term Loan due 2014, Ba3 (to LGD 3, 45 percent from LGD 3, 47 percent).

The Audatex customer base includes more than 900 automobile insurance companies, 33,000 collision repair facilities, 7,000 independent assessors and 3,000 automotive recyclers.

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