Moody’s trims Macom Technology

Moody's Investors Service said it downgraded Macom Technology Solutions Holdings, Inc.'s corporate family rating to B2 from Ba3, probability of default rating to B2-PD from Ba3-PD and senior secured credit facilities rating to B2 from Ba3.

The agency also downgraded the speculative grade liquidity rating to SGL-3 from SGL-2.

The outlook was changed to stable from negative.

Moody’s said the downgrade of the corporate family rating by two notches reflects weaker than expected financial performance and an expectation for EBITDA margins and financial leverage metrics to remain weak over the next 12 to 18 months.

The agency said it expects Macom's recovery from both the slowdown of Chinese communications network infrastructure spending and the exit from the LR4 module market will remain slow, weighing on the company’s revenues and margins in its Telecom segment, such that debt to EBITDA, Moody's adjusted, remains above 6x over the next year.

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