Moody's: Monitronics debt restructuring likely

Moody's Investors Service said it appended a limited default (LD) designation to Monitronics International Inc.'s probability of default rating (Ca-PD) due to the recent expiration of the 30-day grace period allowed by lenders after the company missed a scheduled interest payment on its $585 million senior unsecured notes.

The agency said it considers the company's notes as in default.

Moody's definition of a default captures all missed interest and principal payments according to the original terms of a contractual obligation, the agency said.

All of Monitronics other ratings, including its Ca corporate family rating, SGL-4 speculative grade liquidity rating and individual instrument ratings, have been affirmed.

The outlook remains negative.

The company's 2018 Form 10-K reflected a going-concern qualification that the company received from its auditors due to potential credit-agreement covenant breaches and the potential acceleration of both the secured and unsecured debt that such breaches could trigger, Moody's added.

The agency said it believes a debt restructuring is highly likely.

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