Moody’s cuts Gibson CFR to Caa1

Moody's Investors Services said it downgraded Gibson Brands, Inc.’s corporate family rating to Caa1 from B3 due to the company's weak operating results pushing credit metrics below Moody's expectations.

The outlook is negative. This action concludes a review for downgrade that was initiated on Dec. 22.

"The downgrade reflects the weak performance and the resulting very high leverage and also the additional financial obligations Gibson incurred from its agreement with a consumer electronics supplier to settle overdue payables and the stress it puts on company's liquidity profile," Moody’s senior credit officer Kevin Cassidy said in a news release.

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