Moody's: Omnova outlook stable

Moody's Investors Service said it changed the outlook for Omnova Solutions Inc. to stable from positive and affirmed its B2 corporate family and probability-of-default ratings.

The issuer has $150 million guaranteed senior secured term loan B due 2014 rated B2 (LGD4, 52% from LGD3, 48%).

Moody's said the outlook reflects weaker margins and higher leverage.

The stable outlook reflects Moody's expectation that the company will maintain adequate liquidity as a result of some success in maintaining or improving its margins and generating modest free cash flow, the agency noted.

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