Moody's downgrades Aquilex

Moody's Investors service said it downgraded Aquilex Holdings, LLC corporate family rating to B3, its revolver and term loan A to Ba3 (LGD2, 20%) from Ba2 (LGD2, 21%) and its $225 million sub notes to Caa1 (LGD5, 76%) from B3 (LGD5, 77%).

The outlook remains negative.

The downgrade reflects the significant weakness in the company's revenues and profitability caused by the weak global economy and the resulting substantial customer deferral of projects, according to the agency.

The downgrade reflects the expectation that the company's free cash flow generation, interest coverage and overall credit metrics will remain under pressure over the intermediate term as its customers are likely to remain cautious on their procurement policies, the agency noted.

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