Moody's lowers PowerTeam view to negative

Moody's Investors Service said it changed PowerTeam Services, LLC's outlook to negative from stable and affirmed the company's B3 corporate family rating and B3-PD probability of default rating, as well as the Caa2 senior secured second-lien term loan rating.

Moody's also said it downgraded the company's senior secured first-lien revolver and term loan ratings to B3 (LGD 3) from B2 (LGD 3).

The negative outlook considers the company's operational underperformance relative to prior expectations, the agency said, including the delayed restructuring of the electric segment.

The ratings reflect PowerTeam's modest scale, relative lack of geographic and end-market diversification compared to other rated engineering and construction companies, Moody's said.

The ratings also consider its significant customer concentration and event risk under private equity ownership, the agency said.

The company is primarily focused on providing services to gas and electric utilities, Moody's said, and has no exposure to other end-markets and little exposure to other geographic regions.

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