Moody's cuts Alorica

Moody's Investors Service said it downgraded Alorica Inc.'s corporate family rating to Caa2 from Caa1, probability of default to Caa2-PD from Caa1-PD and its senior secured facility to Caa2 from Caa1. The ratings have also been placed under review for further downgrade.

Moody's said its decision to downgrade the CFR to Caa2 and place Alorica's ratings under review reflects incremental concern regarding the company's ability to secure another extension for the upcoming $100 million principal payment under the term loan A due Friday, as well as the risk it could face difficulty in refinancing its current capital structure on time and under economical terms. Delays in completing a comprehensive refinancing transaction could materially strain already weak liquidity and increase the probability of default.

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