Moody's drops Cohr

Moody's Investors Service said it downgraded Cohr Holdings, Inc.'s corporate family rating and probability of default ratings to Caa2 from Caa1.

Moody's said it also downgraded the ratings on the senior secured credit facility to Caa1 from B3.

The outlook remains negative.

According to the agency, the downgrade of the ratings follows the significant decline in EBITDA that Cohr reported for the quarter ended Sept. 30.

In May 2008, Cohr was notified that its largest customer, a national hospital company, would not be renewing its contract for Biomedical and Diagnostic Imaging equipment servicing and maintenance, and Moody's said it believes the decline in EBITDA in the quarter signals increasing risk that the company may not be able to sufficiently offset the lost business through cost cutting measures and new business wins.

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