Moody’s lowers New Trident view to negative

Moody’s Investors Service said it revised the outlook on New Trident Holdcorp, Inc. to negative from stable.

Moody’s also said it affirmed the company’s B3 corporate family rating and B3-PD probability of default rating, along with the B2 (LGD 3) on its $70 million senior secured revolver due in 2018, B2 (LGD 3) on its $340 million senior secured first-lien term loan due 2019 and Caa2 (LGD 5) on its $155 million senior secured second-lien term loan due 2020.

The outlook revision reflects an expectation that liquidity will remain weak due to a slowdown in collections of accounts receivable associated with the implementation of the company’s new billing system, the agency said.

Moody’s also said it believes New Trident’s maximum total leverage covenant will be tight throughout 2016, possibly requiring the company to seek an amendment.

The agency added that it expects the company will continue to pursue tuck-in acquisitions to supplement organic growth.

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