Moody's lowers Lazy Days

Moody's Investors Service said it downgraded Lazy Days' R.V. Center, Inc.'s corporate family and probability-of-default ratings to B3 from B2, its senior unsecured notes to Caa1 (LGD5, 76%) from B3 (LGD4, 68%) and its speculative-grade liquidity rating to SGL-4 from SGL-3.

The outlook remains negative.

The agency said Lazy Days' credit metrics and financial flexibility have deteriorated due to softer RV unit sales and precipitous margin declines over the last two years, and Moody's expectation is for limited improvement in metrics over the near-to-intermediate term as a result of continued-soft economic conditions and slowing discretionary spending.

The consolidated debt-to-EBITDA ratio is more than 8.5 times.

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