Moody's reviews ASG

Moody's Investors Service said it placed under review for downgrade ASG Consolidated LLC's B1 corporate family and probability-of-default ratings and $251 million 1½% senior discount notes due 2011 at B3 (LGD5, 87%). American Seafoods Group LLC has a $75 million senior secured revolving credit expiring in 2011 and senior secured term loan A and term loan B rated Ba3 (LGD3, 33%).

The review reflects concern that soft pricing in 2009 relative to 2008, combined with a lower allowable catch for the industry, will result in reduced EBITDA, higher leverage and eroding covenant cushion, according to the agency.

Moody's said it expects the debt-to-EBITDA ratio to increase to more than 6.5 times in fiscal 2009 from less than 5 times in fiscal 2008.

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