Moody's cuts Masonite view to negative

Moody's Investors Service said changed Masonite Corp.'s outlook to negative from stable following the announcement that the volume of the company's business with Home Depot fell by 50%. Home Depot is the company's largest customer.

The agency affirmed the corporate family and probability-of-default ratings at B2, $1.172 billion guaranteed senior secured term loan due 2013 and $350 million guaranteed senior secured revolver due 2011 at Ba3 (LGD3, 32%) and speculative grade liquidity rating at SGL-3.

Masonite's ratings consider the loss of Home Depot business and the company's high leverage and low free cash flow generation relative to debt levels, Moody's said, adding that the ratings continue to benefit from Masonite's market position as leading producer of doors in North America.

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