Moody’s: ABB/Con-Cise view to negative

Moody's Investors Service said it changed ABB/Con-Cise Optical Group LLC's outlook to negative from stable and affirmed its B3 corporate family rating, B3-PD probability of default rating and Caa2 second-lien term loan rating.

The agency also downgraded the company's first-lien term loan B and revolver to B2 from B1.

Moody’s said the downgrades of the first-lien ratings reflect the correction of a prior error. In the June 1, 2016 rating action, the Loss Given Default model included the wrong family recovery rate. The error has now been corrected, and these actions reflect this change.

The negative outlook reflects Moody's view that a key supplier's decision to raise prices to distributors will affect ABB/Con-Cise’s profitability, which will impede deleveraging over the coming year.

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