Moody's drops Home Interiors and Gifts

Moody's Investors Service said it lowered the long-term debt ratings of Home Interiors and Gifts, Inc.

Challenging macroeconomic and industry trends have eroded the company's sales, profits and cash flows, such that the company is likely to require a near-term restructuring of its sizable debt obligations in order to execute its turnaround strategies, the agency said.

The outlook remains negative.

Affected ratings include the company's corporate family rating downgraded to Caa3 from B3, $50 million five-year senior secured revolving credit facility due 2009 to Caa2 from B3, $302.5 million seven-year senior secured term loan facility due 2011 to Caa2 from B3 and $149.1 million 10 1/8% senior subordinated notes due 2008 to Ca from Caa2.

The company's ratings and negative outlook reflect the proximity of a potential debt restructuring, as continued operating pressures will challenge the company's ability to meet its future debt obligations through internal profits and cash flows, the agency added.

© 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.