Moody's might downgrade EveryWare

Moody's Investors Service said it placed EveryWare Global Inc.'s B2 corporate family rating, its B2-PD probability of default rating and the B2 (LGD4, 54%) $250 million senior secured term loan due 2020 of Anchor Hocking, LLC and Oneida, Ltd. on review for downgrade. Concurrently, Moody's lowered the company's speculative-grade liquidity rating to SGL-4 from SGL-2.

The agency said the downgrade to SGL-4 and review for downgrade were triggered by the company's weakened near-term liquidity profile, operating underperformance and uncertainty stemming from recent executive changes.

Moody's expects covenant tightness and a potential need for an amendment in the near term given challenging industry conditions, the already weak cushion as of the third quarter of 2013, contractual tightening beginning in the first quarter of 2014 and the company's seasonal working capital pattern, which historically has required incremental first-quarter and second-quarter borrowings. In addition, Moody's anticipates reduced free cash generation due to soft industry demand.

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