Moody’s downgrades Global Eagle

Moody’s Investors Service said it downgraded Global Eagle Entertainment, Inc.’s corporate family rating to Ca from Caa2 as well as the company’s probability of default rating to Ca-PD/LD from Caa2-PD.

Moody’s also downgraded the rating on the company’s first-lien facilities to Caa2 from B3. The speculative grade liquidity rating remains at SGL-4.

The downgrades follow the company’s announcement on Friday that it missed the interest payment due on its first-lien facilities on July 9, Moody’s said.

Global Eagle agreed with its lenders to amend the first-lien credit agreement. The amendment extends the grace period for the missed interest payment from five business days to Aug. 1. “Moody’s views the amendment as a distressed exchange and the /LD appended PDR reflects the resulting limited default on the first lien facilities. The /LD will be removed in the near term,” the agency said in a press release.

The outlook is negative.

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