Moody’s cuts Commercial Barge, facility

Moody's Investors Service said it downgraded Commercial Barge Line Co.’s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD and senior secured bank credit facility downgraded to Caa1 from B3.

The outlook remains negative.

Moody’s said the downgrade reflects lower than expected operating performance, driven by unfavorable fundamentals in the company's liquid and dry cargo end markets, amidst integration of AEP River Operations, LLC (River Ops), acquired in late 2015.

This has led to sustained high financial leverage (debt-to-EBITDA), above 7 times, and weakened coverage metrics, including EBIT-to interest, below 1 times (all metrics after Moody's standard adjustments), the agency explained.

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