Moody's downgrades Form

Moody's Investors Service said it downgraded Form Technologies LLC's corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

The agency also downgraded the rating on the company's first-lien senior secured revolving credit facility and term loan to B2 from B1 and second-lien senior secured term loan to Caa2 from Caa1.

The company was previously named Dynacast International LLC.

The downgrades were driven by an expectation that financial leverage will remain elevated at higher than 5.7x on a sustained basis due to the company's increase in funded debt levels, Moody's said.

The increase in debt is related to the company's largely debt financed acquisitions, which have kept leverage elevated despite generating good operating performance, the agency said.

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