Moody's cuts Great Lakes Dredge

Moody's Investors Service said it downgraded the ratings of Great Lakes Dredge & Dock Corp. In addition, the ratings have been placed on review for possible further downgrade.

Ratings lowered include the $117.6 million bank facilities, comprising a $60 million revolving credit facility due 2008 and a $57.6 million term loan B due 2010, to B2 from B1; $175 million senior subordinated notes due 2013 to Caa2 from B3; senior implied rating to B2 from B1, and senior unsecured issuer rating to Caa1 from B2.

Moody's said the rating action considers the deterioration in operating performance experienced in the first half of 2004, with the balance of the year's performance likely to be hampered by the unexpected drop in bid levels in a difficult contracting environment. The ratings also reflect Moody's concerns about longer-term revenue visibility, operating margins, and liquidity due to increased uncertainty about timing of a recovery in the dredge services sector.

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