Moody's affirms Gundle

Moody's Investors Service said it affirmed Gundle/SLT Environmental, Inc.'s corporate family and probability-of-default ratings of B2, senior unsecured rating of B3 (LGD4, 66 from LGD4, 65) and speculative grade liquidity rating of SGL-3.

The outlook is negative.

The B2 corporate family rating reflects a leading market position, geographic diversification and modest customer concentration, the agency said.

Constraining the ratings are the company's relatively low operating margins and limited financial flexibility to absorb investments in working capital and plant and equipment, Moody's said.

Ratings could be downgraded if the debt-to-EBITDA ratio approached 5 times, according to Moody's.

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