Moody’s affirms New Trident

Moody's Investors Service said it affirmed New Trident Holdcorp, Inc.’s Caa3 corporate family rating, Caa3-PD probability of default rating, Caa3 rating of the first-lien term loan and Ca rating of the second-lien term loan.

The outlook remains negative.

Following the completion of the restructuring of the company's capital structure, the LD appendage to the probability of default rating was removed.

The agency said the corporate family rating primarily reflects a view that the company's capital structure remains unsustainable with persistent negative free cash flow, increasing total debt and Moody's adjusted debt/EBITDA currently in excess of 15 times.

Moody’s said that while the new money raised through priority first-lien loan has provided liquidity to keep the company's operations running for around one year or so, the agency believes that this liquidity will dwindle if there the company does not turn around its operating performance quickly.

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