Moody's: Liberty Tire view stable

Moody's Investors Service said it affirmed the Caa1 corporate family rating and Caa1-PD probability of default rating for Liberty Tire Recycling Holdco LLC, as well as the Caa2 rating on the company's $200 million senior unsecured notes.

The outlook was revised to stable from negative.

Moody's said the stable outlook reflects its expectation for the company to shift to positive free cash flow with the completion/restoration of the Brantford and Lockport facilities which will both bolster consolidated EBITDA and reduce capex to maintenance levels.

Free cash flow is expected to be applied to meaningfully reduce revolver draw ahead of its late 2014 expiration. Moody's does not anticipate meaningful improvement in end market demand for the company's products.

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