Moody's cuts Hunter Fan

Moody's Investors Service said it lowered Hunter Fan Co.'s corporate family and probability-of-default ratings to B3 from B2.

The agency also downgraded the first-lien secured term loan and revolving credit facility to B2 (LGD3, 38%) from B1 (LGD3, 38%) and second-lien secured term loan to Caa2 (LGD5, 86%) from Caa1 (LGD5, 86%).

The outlook is stable.

Moody's said the downgrade reflects the company's weak credit metrics as a result of soft operating performance, as soft economic conditions and poor weather have resulted in tighter inventory management.

Hunter Fan's B3 corporate family rating reflects the company's weak credit metrics, moderate scale in the home furnishing/small appliance market and high customer concentration with major home improvement retail chains, the agency said.

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