Moody's: AmerCable view to negative

Moody's Investors Service said it revised AmerCable Inc.'s outlook to negative from stable, and affirmed its B3 corporate family rating and B3 probability of default rating.

The agency also said it affirmed its $15 million senior secured revolving credit facility due 2012 at B2 (LGD 3, 38%) and $88 million senior secured term loan due 2014 at B2 (LGD 3, 38%).

The ratings reflect an expectation that AmerCable will grow its revenues and earnings in the second half of 2010 such that credit metrics will improve from current levels, Moody's said.

The ratings also consider the likelihood for credit metrics to further deteriorate over the short-term given the company's comparatively strong operating performance in the second quarter of 2009, the agency said.

The agency said it has concerns about AmerCable's ability to comply with the financial covenants governing the credit facility.

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