Moody’s pares PrimeSource

Moody's Investors Service said it downgraded Park River Holdings, Inc.'s (PrimeSource) senior secured first-lien bank credit facility to B3 from B2 and the rating on the senior unsecured notes to Caa2 from Caa1. The agency also lowered the corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD. Moody’s changed the outlook to stable from negative.

“The downgrade reflects PrimeSource's elevated leverage, which is expected to remain above 6.5x through year-end 2024. Interest coverage, defined as EBITA-to-interest expense, is also expected to remain below 1.5x through year-end 2024. Credit metrics have been pressured due to weaker volumes and earnings levels from declining demand in both new construction and repair & remodeling end markets,” Moody’s said in a press release.

The healthier outlook reflects PrimeSource’s exposure “to the more stable repair & remodeling end market and good overall liquidity profile,” the agency noted.

PrimeSource's outlook is also buoyed by a revenue scale of more than $2.5 billion, solid EBITDA margin, growing market position, and end market diversity, Moody’s said.

© 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.