Moody's cuts Oriental Trading

Moody's Investors Service said it lowered corporate family and probability-of-default ratings on Oriental Trading Co. to Caa3 from Caa2, its first-lien credit facilities to Caa1 from B3 and second-lien term loan to Ca from Caa3. Ratings remain under review for further downgrade.

The actions result from the continued weakness in the company's operating results and the increased probability that the company will default on its debt over the next year, according to the agency.

"Oriental Trading Company has yet to demonstrate revenue and EBITDA stability following significant increase in postal costs in 2007, and the company is being negatively impacted in the current recessionary economic environment," Moody's vice president Scott Tuhy said in a statement.

© 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.