PE Debt Watch (Downgrades & Upgrades)
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Moody’s Investors Service and Standard & Poor’s Ratings Services. Mixed bag this week, with a handful of downgrades, one upgrade and two withdrawals, one for "business reasons," which can mean any number of things, including the company not liking its rating. To this I say, 'lame.' Company: Wastequip Inc. Sponsor: Carlyle Group and Odyssey Investment Partners Action: Moody's lowered the company’s corporate family and probability of default ratings to Caa2 from Caa1. In addition, the ratings on the senior secured credit facility and term loan were lowered to B3 from B2. Highlight: ‘The ratings downgrade reflects Moody's view that revenues and earnings will remain at relatively low levels and that financial leverage will remain elevated over the near term.”
