Moody’s lowers Young Innovation

Moody's Investors Service said it downgraded YI, LLC's (Young Innovation) ratings, including the corporate family rating to Caa1 from B3, the probability of default rating to Caa1-PD from B3-PD, the senior secured first-lien revolving credit facility, the senior secured first-lien term loan and senior secured first-lien delayed-draw term loan to B3 from B2. The outlook was revised to negative from stable.

“The ratings downgrade reflects increasing refinancing risk due to upcoming debt maturities. The senior secured first-lien term loans mature in November 2024 and the senior secured first-lien revolving credit facility expires in August 2024. Moody's calculates Young Innovation's debt to EBITDA to be in the low eight times range as of June 30, 2023,” the agency said in a press release.

Moody's said it forecasts leverage to stay elevated over the next 12 to 18 months, despite estimates for modest earnings growth in 2024. “Moody's believes that the company's high leverage and volatile refinancing conditions may challenge the company's ability to address its refinancing needs.”

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