Moody’s lowers Sensience

Moody's Investors Service said it downgraded its ratings for Sensience, Inc. (formerly Therm-O-Disc Inc.), including its corporate family rating to Caa2 from B3 and probability of default rating to Caa2-PD from B3-PD.

Moody's also downgraded Sensience's senior secured first-lien bank credit facilities to Caa1 from B2, and its senior secured second-lien term loan to Caa3 from Caa2.

The outlook is stable.

“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 agency said in a news release.

“Modest revenue growth over the next several quarters will provide only incremental cash flow as the demand for home appliances slow.

“Interest coverage will remain weak due to weaker operating performance and an elevated interest rate environment.”

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