Moody's lowers J.G. Wentworth

Moody's Investors Service said it downgraded the corporate family rating of J.G. Wentworth Co. to C from Caa3, along with the senior secured rating of its subsidiary Orchard Acquisition Co., LLC to C from Caa3.

The agency also revised its outlook to stable from negative.

The downgrades follow news that the company entered into a restructuring support agreement with more than 87% of its $449.5 million senior secured term loan lenders, Moody's explained.

The company's actions increase creditors' probability of loss and potential loss severity, the agency said.

The restructuring is expected to occur through a pre-packaged Ch. 11 plan of reorganization, Moody's said.

The agency said it expects to withdraw the company's ratings upon the filing of the Ch. 11 plan of reorganization.

The stable outlook reflects an expectation that the impact of the filing on day-to-day operations will be more limited since the company's operating subsidiaries will not be part of the filing and no other credit facilities of the company that fund the company's day-to-day operations will be affected by the restructuring, Moody's said.

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