Moody's downgrades Sabre Industries

Moody's Investors Service said it downgraded Sabre Industries, Inc.’s corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD and its $80 million secured revolving credit facility and $155 million secured term loan to B2 (LGD3) from B1 (LGD3). The outlook is stable.

The downgrade follows a material shortfall in Sabre's performance in the 2014 fiscal year ended in April and lower expectations for the coming year, the agency said. Although the company's revenues grew significantly over the last year from organic developments as well as consolidation of an acquisition, Moody’s said margins declined and produced EBITDA far below its previous assumptions.

Moody’s said the B3 corporate family rating incorporates the company's modest revenue base, financial leverage resident in its capital structure and lack of free cash flow generation to date.

The rating also recognizes Sabre as one of the larger North American providers of poles, towers and related storage shelters deployed in electric transmission and distribution grids as well as wireless communication networks, the agency said.

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