Saturday, February 19, 2022


Minotaur Acquisition, Inc. — Moody’s Affirms Minotaur Acquisition’s B3 company household ranking and modifications outlook to secure from destructive

Ranking Motion: Moody’s Affirms Minotaur Acquisition’s B3 company household ranking and modifications outlook to secure from negativeGlobal Credit score Analysis…

By Staff , in IRAs , at February 19, 2022


Ranking Motion: Moody’s Affirms Minotaur Acquisition’s B3 company household ranking and modifications outlook to secure from negativeGlobal Credit score Analysis – 16 Feb 2022New York, February 16, 2022 — Moody’s Buyers Service (“Moody’s”) in the present day affirmed Minotaur Acquisition, Inc.’s (Minotaur) B3 company household ranking (CFR), B2 backed senior secured first lien time period mortgage and revolving credit score facility rankings and affirmed its Caa2 backed senior secured second lien time period mortgage ranking. Minotaur is the debt-issuing entity of Millennium Belief Firm, LLC (Millennium). On the identical time, Moody’s has modified Minotaur’s outlook to secure from destructive.Affirmations:..Issuer: Minotaur Acquisition, Inc.Company Household Ranking, Affirmed at B3Backed Senior Secured First Lien Revolving Credit score Facility, Affirmed at B2Backed Senior Secured First Lien Time period Mortgage, Affirmed at B2Backed Senior Secured Second Lien Time period Mortgage, Affirmed at Caa2Outlook Actions:..Issuer: Minotaur Acquisition, Inc.Outlook, Modified to Secure from NegativeRATINGS RATIONALEMoody’s mentioned the rankings’ affirmation displays Minotaur’s robust progress in buyer accounts and shopper money, excessive EBITDA margin and market management within the automated rollover particular person retirement account (IRA) market. The rankings’ affirmation additionally displays Minotaur’s prudent method to its money sweep program, which is laddered over a lot of years and advantages from mounted deposit preparations throughout a lot of accomplice banks. The rankings additionally mirror the agency’s small scale, weak (albeit enhancing) pretax earnings, sensitivity to rates of interest, and its possession by a monetary sponsor which might lead to aggressive monetary administration actions over time resembling will increase in debt leverage.The change in Minotaur’s outlook to secure from destructive displays enhancements in Minotaur’s trailing-12-months Moody’s-adjusted debt / EBITDA ratio to round 4.9x at 30 September 2021, in comparison with 5.6x at 31 December 2020 and 6.3x at 31 December 2019. Moody’s expects Minotaur’s leverage ratio to worsen barely in 2022 (assuming no modifications to the agency’s capital construction) however stay at a degree in line with its present rankings.The change in outlook additionally displays diminished erosion of Minotaur’s service and administrative income from a modified rate of interest surroundings. Moody’s now expects three US rate of interest will increase in 2022 and 4 extra will increase in 2023 which can profit Minotaur’s service and administrative payment income. Though a big portion of high-yielding deposit contracts had expired in 2021, greater rates of interest and powerful account progress will scale back the general destructive impression on this income. Primarily based on the laddering and expiration of Minotaur’s current money sweeps, Moody’s nonetheless expects a average decline in interest-rate-linked income throughout 2022. Nonetheless, Minotaur’s robust progress in buyer accounts and shopper money, in addition to its potential to generate optimistic working leverage will finally offset these declines.In accordance with Moody’s Loss Given Default (LGD) for Speculative-Grade Corporations methodology and mannequin, the B2 rankings on Minotaur’s $595 million first lien time period mortgage and $90 million revolving credit score facility mirror their precedence rating in Minotaur’s capital construction. The Caa2 ranking on Minotaur’s $245 million second lien time period mortgage displays the ability’s secondary rating in Minotaur’s capital construction.Minotaur Acquisition, Inc. is the acquisition car by way of which entities of Abry Companions acquired Millennium Belief Firm, LLC, which operates as a belief firm beneath the legal guidelines of the state of Illinois. Millennium relies in Oak Brook, Illinois and gives administration and custodial providers for retirement accounts to people, advisors and establishments in addition to different institutional providers.FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGSMinotaur’s rankings may very well be upgraded ought to it increase its income streams or develop new income sources throughout the self-directed IRA or fund custody actions that would cut back reliance on rates of interest.The demonstration of a extra creditor-friendly monetary coverage, resembling paying-down debt or organically deleveraging to ranges under 5.0x on a sustained foundation, might additionally lead to an improve.Minotaur’s rankings may very well be downgraded ought to it reveal more and more aggressive monetary insurance policies by way of an additional enhance in debt leverage to fund shareholder dividends or acquisitions.The rankings is also downgraded ought to rates of interest stay very low and lead to vital profitability erosion not offset by price administration or different income streams, or with indication that the agency is keen to tackle extra rate of interest threat.A major deterioration in franchise worth from authorized, regulatory, compliance or different points that would cut back income, enhance prices, and harm relations with record-keepers and plan sponsors might additionally lead to a downgrade.The principal methodology utilized in these rankings was Securities Business Service Suppliers Methodology printed in November 2019 and out there at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187116. Alternatively, please see the Ranking Methodologies web page on www.moodys.com for a replica of this technique.REGULATORY DISCLOSURESFor additional specification of Moody’s key ranking assumptions and sensitivity evaluation, see the sections Methodology Assumptions and Sensitivity to Assumptions within the disclosure kind. Moody’s Ranking Symbols and Definitions could be discovered at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For rankings issued on a program, collection, class/class of debt or safety this announcement gives sure regulatory disclosures in relation to every ranking of a subsequently issued bond or be aware of the identical collection, class/class of debt, safety or pursuant to a program for which the rankings are derived completely from current rankings in accordance with Moody’s ranking practices. For rankings issued on a assist supplier, this announcement gives sure regulatory disclosures in relation to the credit standing motion on the assist supplier and in relation to every explicit credit standing motion for securities that derive their credit score rankings from the assist supplier’s credit standing. For provisional rankings, this announcement gives sure regulatory disclosures in relation to the provisional ranking assigned, and in relation to a definitive ranking that could be assigned subsequent to the ultimate issuance of the debt, in every case the place the transaction construction and phrases haven’t modified previous to the task of the definitive ranking in a fashion that will have affected the ranking. For additional info please see the rankings tab on the issuer/entity web page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit score assist from the first entity(ies) of this credit standing motion, and whose rankings could change on account of this credit standing motion, the related regulatory disclosures shall be these of the guarantor entity. Exceptions to this method exist for the next disclosures, if relevant to jurisdiction: Ancillary Providers, Disclosure to rated entity, Disclosure from rated entity.The rankings have been disclosed to the rated entity or its designated agent(s) and issued with no modification ensuing from that disclosure.These rankings are solicited. Please discuss with Moody’s Coverage for Designating and Assigning Unsolicited Credit score Rankings out there on its web site www.moodys.com.Regulatory disclosures contained on this press launch apply to the credit standing and, if relevant, the associated ranking outlook or ranking evaluation.Moody’s common rules for assessing environmental, social and governance (ESG) dangers in our credit score evaluation could be discovered at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The International Scale Credit score Ranking on this Credit score Ranking Announcement was issued by one in every of Moody’s associates exterior the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Principal 60322, Germany, in accordance with Artwork.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit score Ranking Companies. Additional info on the EU endorsement standing and on the Moody’s workplace that issued the credit standing is offered on www.moodys.com.The International Scale Credit score Ranking on this Credit score Ranking Announcement was issued by one in every of Moody’s associates exterior the UK and is endorsed by Moody’s Buyers Service Restricted, One Canada Sq., Canary Wharf, London E14 5FA beneath the legislation relevant to credit standing companies within the UK. Additional info on the UK endorsement standing and on the Moody’s workplace that issued the credit standing is offered on www.moodys.com.Please see www.moodys.com for any updates on modifications to the lead ranking analyst and to the Moody’s authorized entity that has issued the ranking.Please see the rankings tab on the issuer/entity web page on www.moodys.com for added regulatory disclosures for every credit standing. Gabriel Hack Analyst Monetary Establishments Group Moody’s Buyers Service, Inc. 250 Greenwich Road New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Donald Robertson Affiliate Managing Director Monetary Establishments Group JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 Releasing Workplace: Moody’s Buyers Service, Inc. 250 Greenwich Road New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Consumer Service: 1 212 553 1653 © 2022 Moody’s Company, Moody’s Buyers Service, Inc., Moody’s Analytics, Inc. and/or their licensors and associates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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MCO and Moody’s Buyers Service additionally preserve insurance policies and procedures to deal with the independence of Moody’s Buyers Service credit score rankings and credit standing processes. Data relating to sure affiliations which will exist between administrators of MCO and rated entities, and between entities who maintain credit score rankings from Moody’s Buyers Service and have additionally publicly reported to the SEC an possession curiosity in MCO of greater than 5%, is posted yearly at www.moodys.com beneath the heading “Investor Relations — Company Governance — Director and Shareholder Affiliation Coverage.”Further phrases for Australia solely: Any publication into Australia of this doc is pursuant to the Australian Monetary Providers License of MOODY’S affiliate, Moody’s Buyers Service Pty Restricted ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as relevant). This doc is meant to be offered solely to “wholesale shoppers” throughout the which means of part 761G of the Firms Act 2001. By persevering with to entry this doc from inside Australia, you symbolize to MOODY’S that you’re, or are accessing the doc as a consultant of, a “wholesale shopper” and that neither you nor the entity you symbolize will immediately or not directly disseminate this doc or its contents to “retail shoppers” throughout the which means of part 761G of the Firms Act 2001. MOODY’S credit standing is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the fairness securities of the issuer or any type of safety that’s out there to retail traders.Further phrases for Japan solely: Moody’s Japan Ok.Ok. (“MJKK”) is a wholly-owned credit standing company subsidiary of Moody’s Group Japan G.Ok., which is wholly-owned by Moody’s Abroad Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan Ok.Ok. (“MSFJ”) is a wholly-owned credit standing company subsidiary of MJKK. MSFJ just isn’t a Nationally Acknowledged Statistical Ranking Group (“NRSRO”). Due to this fact, credit score rankings assigned by MSFJ are Non-NRSRO Credit score Rankings. Non-NRSRO Credit score Rankings are assigned by an entity that’s not a NRSRO and, consequently, the rated obligation is not going to qualify for sure forms of therapy beneath U.S. legal guidelines. MJKK and MSFJ are credit standing companies registered with the Japan Monetary Providers Company and their registration numbers are FSA Commissioner (Rankings) No. 2 and three respectively.MJKK or MSFJ (as relevant) hereby disclose that the majority issuers of debt securities (together with company and municipal bonds, debentures, notes and industrial paper) and most well-liked inventory rated by MJKK or MSFJ (as relevant) have, previous to task of any credit standing, agreed to pay to MJKK or MSFJ (as relevant) for credit score rankings opinions and providers rendered by it charges starting from JPY100,000 to roughly JPY550,000,000.MJKK and MSFJ additionally preserve insurance policies and procedures to deal with Japanese regulatory necessities. ​



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