Moody's drops Linens 'N Things to Caa1

Moody's Investors Service said it downgraded Linens 'N Things, Inc.'s corporate family and probability-of-default ratings to Caa1 from B3, its $650 million senior secured guaranteed notes due 2014 to Caa2 (LGD4, 64%) from B3 (LGD4, 55%) and speculative grade liquidity rating to SGL-4.

The outlook remains negative.

Moody's said the downgrade was prompted by the company's year-end borrowing levels being higher and its revolver availability being lower than expected, resulting in weaker liquidity and limited cushion.

The Caa1 corporate family rating reflects the company's exceptionally weak credit metrics and its weak liquidity, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.