Moody’s revises EnTrans view to negative

Moody’s Investors Service said it revised the outlook for EnTrans International, LLC to negative from stable.

“The change in outlook to negative reflects weaker-than-expected results year to date combined with three consecutive quarters of declining backlog in both the transportation and oil & gas equipment segments which typically is an indicator of revenue and EBITDA pressure going forward. The company also closed its 2018 refinancing with a higher mandatory amortization rate on its senior secured term loan than what was initially anticipated, which along with the potential EBITDA pressure, has muted our expectation for future cash flow generation and increases the likelihood of reliance on its ABL to meet liquidity needs,” Moody’s said in a news release.

The agency affirmed the company’s B2 corporate family rating, B2-PD probability of default rating and the B3 rating for the senior secured first-lien term loan due 2024.

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