Moody's downgrades Language Line

Moody's Investors Service said it downgraded Language Line Holdings, LLC's corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD as well as Language Line, LLC’s senior secured credit facility due June 20, 2016 and senior secured credit facility due Dec. 20, 2015 to B2 (LGD3, 36%) from B1 and senior secured credit facility due Dec. 20, 2016 to Caa2 (LGD5, 89%) from Caa1. The outlook was changed to negative from stable.

The agency said the downgrade reflects the company's weak liquidity and management's aggressive financial policy in managing tight financial covenants.

The rating incorporates Moody’s expectation that Language Line will address its weak liquidity and approaching debt maturities over the next 24 months in a timely manner.

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