Moody’s pares Sensience

Moody’s Investors Service said it lowered Sensience, Inc.'s backed senior secured first-lien credit facilities to Caa2 from Caa1 and its backed senior secured second-lien term loan to Ca from Caa3. The agency also lowered its corporate family rating to Caa3 from Caa2 and the company's probability of default rating to Caa3-PD from Caa2-PD.

“The ratings downgrades reflect an elevated risk of a distressed exchange following Sensience's significant cash burn and limited revolver availability resulting in weak liquidity. The company received $5.4 million from its sponsor through a first-lien debt issuance. Continued soft demand for HVAC products over the next several quarters will further constrain liquidity. Interest coverage will remain weak due to the challenged operating performance and the existing interest rate environment,” Moody’s said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.