Coty (now snr unsecured; Ba2 Pos, BBB- Stable, BBB- Stable) Fitch affirms
Its affirmed LT issuer ratings at BB+ and the now unsecured notes (previously secured) at BBB- stable (i.e. left unch). As we expected it has no issue with the covenant suspension of collateral against them (S&P similarly had no issue given reversion clause). Note there is a small amount (€180m 26s) of legacy snr unsecured in the stack that will be B1/BB+/BB+ rated.
Worth noting on above - technically the notes would be B1 rated now under Moody's given it notches the secured/unsecured flat/-2 to parent rating of Ba2. The only notes that do not have the fall away provision are the $26s ($650m outstanding) and the €26s (€700m) - it will leave about 35% of debt in secured and unclear if that is enough to see Moody's notch less. Even if it does come in at B1 it is a technicality not a fundamental mover; both those are subject to getting taken down soon when asset sale proceeds come in.