Moody's may cut MMI

Moody's Investors Service said it placed the debt ratings of MMI Products on review for possible downgrade to reflect the company's difficulties in maintaining margins in certain product lines and to reflect the company's needs to refinance its senior subordinated notes due to a trigger in its bank credit facilities.

Affected ratings include the $188.7 million 11.25% senior subordinated notes due 2007 at Caa2, $11.3 million 13% senior subordinated notes due 2007 at Caa2 and corporate family rating at B3.

In its review, Moody's said it will focus on MMI's ability to raise prices to offset its higher raw material costs, its ability to refinance its subordinated notes and the company's general liquidity needs.

The agency added the ratings are further impacted by high leverage ratios and low interest coverage.

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