Moody's downgrades AmerCable

Moody's Investors Service said it lowered AmerCable Inc.'s corporate family and probability of default ratings to Caa1 from B3, along with its $15 million senior secured revolving credit facility due 2012 to B3 (LGD 3, 38%) from B2 (LGD 3, 38%) and $84 million senior secured term loan due 2014 to B3 (LGD 3, 38%) from B2 (LGD 3, 38%).

The outlook remains negative.

The downgrades reflect earnings pressure stemming from increases in the price of non-copper materials, Moody's said.

As such, its EBITDA has declined on a year-over-year basis in recent quarters, resulting in a limited cushion under the leverage ratio governing the first-lien senior secured credit facilities, the agency said.

The downgrades also consider heightened refinancing risk with the $15 million revolving credit facility maturing on June 29, 2012, Moody's said.

© 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.