Moody's snips Kaiser Aluminum

Moody's Investors Service said it downgraded Kaiser Aluminum Corp.'s corporate family rating to B1 from Ba3, its probability of default rating to B1-PD from Ba3-PD and its senior unsecured notes to B2 from B1. The company's speculative grade liquidity rating was downgraded to SGL-2 from SGL-1.

“The ratings downgrade reflects the deterioration in Kaiser's operating and financial performance that has resulted in margin compression, high leverage, low coverage ratios and overall, weakened credit profile. The downgrade also incorporates the uncertainty around the timing and the magnitude of the anticipated recovery in earnings, return to positive free cash flow generation and deleveraging,” Moody’s said in a press release.

The outlook remains stable.

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