Moody's lowers Milacron

Moody's Investors Service said it lowered the probability-of-default rating of Milacron Inc. to D, its corporate family rating to Ca from Caa2 and $225 million of 11.5% guaranteed senior secured notes due 2011, to Ca (LGD5, 71%) from Caa2 (LGD3 45%).

The outlook is stable.

The actions were prompted by the company's announcement on March 10 it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code and an ancillary proceeding in Canada, the agency said.

Ratings also reflect Moody's opinion that losses to creditors in the various debt classes could be significant based on a distressed multiple of expected operating performance, the agency noted.

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