Moody's clips EaglePicher ratings

Moody's Investors Service said it downgraded the ratings of EPV Merger Sub Inc. (EaglePicher Technologies) including the corporate family rating to Caa2 from Caa1, the probability of default rating to Caa2-PD from Caa1-PD and the senior secured first-lien debt rating to Caa1 from B3. The agency affirmed the rating on the senior secured second-lien debt at Caa3 and changed the outlook to negative from stable.

"EaglePicher's ratings downgrade reflects our view that refinancing risk is rising as the company's revolver will expire in late 2024 and debt to EBITDA will remain very high," said Brian Silver, vice president and senior analyst at Moody's, in a press release. The term loan matures in March 2025.

The weaker outlook reflects the belief that EaglePicher's limited free cash flow will make it very difficult to lower leverage, the agency said.

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