Moody's cuts Merisant notes to Caa3, Caa2, loans to B2

Moody's Investors Service said it downgraded the debt ratings of Merisant Co. and its parent Merisant Worldwide, Inc. following material earnings declines in fiscal 2004 and the likelihood that profits, cash flows and liquidity will remain under pressure as the company seeks to turnaround its operating performance and combat competitive threats. The outlook is stable.

Moody's cut Merisant Worldwide's 12¼% senior subordinated discount notes due May 15, 2014 to Caa3 from Caa1 and Merisant Co.'s $35 million senior secured revolving credit facility due Jan. 11, 2009, $47.77 million senior secured term loan A due Jan. 11, 2009 and $167.11 million senior secured term loan B due Jan. 11, 2010 to B2 from B1 and 9½% $225 million senior subordinated notes due July 15, 2013 to Caa2 from B3.

The ratings downgrade reflects Merisant's significant sales and margin declines, which were most pronounced in the company's North American retail division in grocery, club and mass channels, according to Moody's.

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