Moody's: Moog outlook negative

Moody's Investors Service said it changed the outlook of Moog, Inc. to negative from stable.

The company has Ba2 corporate family and probability-of-default ratings, and Ba3 ratings (LGD5, 81% from 79%) for its $200 million 6¼% senior subordinated notes due 2015 and $200 million 7.25% senior subordinated notes due 2018.

The negative outlook reflects the view that credit metrics will likely approach maximum tolerance level for the Ba2 corporate family rating, according to the agency.

The impact of economic weakness on Moog's industrial and commercial aircraft controls product sales, coupled with recent acquisition spending could increase debt-to-EBITDA ratio of more than 4 times as well as pressure headroom under existing financial covenants, the agency said.

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