Moody's: Libbey Glass view negative

Moody's Investors Service said it revised the outlook for Libbey Glass Inc. to negative from stable and affirmed the B2 corporate family and probability-of-default ratings, B2 rating (LGD4, 55%) on its second-lien senior secured notes and its SGL-3 speculative grade liquidity rating.

The outlook change reflects expectation for weaker operating performance and credit metrics as a result of the deteriorating macroeconomic environment, the agency said.

Libbey Glass' B2 corporate family rating reflects the company's leading market position in foodservice glassware, strong brand names, geographic diversification, extensive distribution capabilities and outlook for continued longer term global growth and profitability improvement, especially in China, the agency noted.

Ratings are tempered by the company's weak credit metrics stemming from high debt levels and significant interest burden, and weak cash flow due to the ongoing capital intensive nature of its business, interest and pension payments, Moody's said.

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