Moody's puts Cooper on downgrade review

Moody's Investors Service said it has placed the ratings of The Cooper Cos., Inc. on review for possible downgrade reflecting lower free cash flow and debt reduction expectations following the company's recent downward revision of its sales and earnings guidance and moderately sized, debt financed acquisitions.

Ratings under review include the company's corporate family rating at Ba3, $275 million five-year senior secured revolving credit facility at Ba3, $225 million five-year senior secured term loan A at Ba3 and $250 Million seven-year senior secured term loan B at Ba3.

Moody's also said it has affirmed the company's SGL-2 speculative grade liquidity rating.

Moody's said its review will focus on the company's ability to improve free cash flow in light of increased competitive pressures in certain segments of Cooper's soft contact lens business and the higher capital expenditure needs over the next several years. The review also will consider the company's debt reduction strategy and examine the impact of existing and potential future acquisitions on Cooper's financial flexibility and whether such acquisitions amplify management distractions, Moody's said.

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