Moody's ups CTI to positive

Moody's Investors Service said it changed the outlook of CTI Foods Holding Co., LLC to positive from stable.

Moody's affirmed the B2 corporate family rating and the B2 (LGD4, 55% from LGD3, 45%) $40 million first-lien revolver due June 2014 and $180 million first-lien term loan due June 2015.

The outlook revision reflects the expectation for continued improvement in operating income and free cash flow generation over the intermediate term, the agency added.

The rating actions incorporate CTI's plans to refinance its second-lien debt with $35 million of incremental first-lien borrowings, the agency said.

The ratings reflect CTI's meaningful leverage, high customer and geographic concentration, and modest size, Moody's said.

The ratings consider CTI's good liquidity profile, consistent margin performance and longstanding customer relationships, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.