Moody’s cuts Guitar Center, notes

Moody's Investors Service said it downgraded Guitar Center Inc.'s (GCI) corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, senior secured first-lien notes to B3 from B2 and unsecured notes to Caa2 from Caa1.

All ratings were placed on review for downgrade.

"The downgrade, along with the possibility of a further downgrade, reflects Moody's concerns regarding GCI's significant and relatively near-term debt maturities," Moody’s senior vice president Keith Foley said in a news release.

"Excluding the company's $375 million asset-backed loan facility, approximately 65% of the company's long-term debt matures in about 18 months."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.