Moody's lowers Merisant

Moody's Investors Service said it lowered the ratings of Merisant Worldwide, Inc., including the company's probability of default and corporate family ratings to Ca from Caa3.

The ratings of the first-lien bank facilities of subsidiary Merisant Co. were also downgraded, the agency said.

These rating actions are based on Moody's concern that, given the current bank credit markets and the company's weak credit metrics, Merisant may not be able to refinance its revolving credit agreement and term loan A, which mature on Jan. 11.

These maturities increase the likelihood of a distressed exchange or bankruptcy filing, the agency added.

The outlook is negative.

Affected ratings include the company's $137 million accreted value 12.25% senior subordinated discount notes maturing May 2014 to C (LGD6,90%) from Ca (LGD6,91%).

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