Moody's may downgrade Koosharem

Moody's Investors Service said it placed the ratings of Koosharem Corp. (doing business as SelectRemedy) under review for possible downgrade, including its B2 corporate family and probability-of-default ratings, the B1 (LGD3, 34%) $50 million senior secured first-lien revolving credit facility and $354 million senior secured first-lien term loan B due 2014 and the Caa1 (LGD5, 86%) $100 million senior secured second-lien term loan due 2014.

The review was prompted by the agency's concern that a further softening of the economy may place additional pressure on the company's sales growth and earnings, particularly as many of its corporate customers reduce the level of temporary staffing, with evidence of weak cash flow generation compounded by ongoing acquisition activities.

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