Moody's turns Circor outlook to negative

Moody's Investors Service said it changed Circor International, Inc.’s outlook to negative from under review and affirmed its ratings, including the B2 senior secured debt rating. The SGL-3 speculative grade liquidity rating remains unchanged.

These actions conclude the review for downgrade started on March 15, the agency said.

“This rating action follows Circor's filing of its 2021 10-K, which included the current year and restated prior-year financial statements. The filing was delayed by the discovery of accounting irregularities in the company's pipeline engineering business, resulting in earnings overstatements over five years through Q3 2021. This has led to weaker credit metrics than Moody's previous expectations, including adjusted debt-to-EBITDA (currently above 8.5x). The leverage will likely remain high through 2022, despite moderating from expected EBITDA growth,” the agency said in a press release.

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