Moody’s drops SEI Holding, loans

Moody's Investors Service said it downgraded SEI Holding I Corp.’s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

Concurrently, the agency downgraded the first-lien senior secured debt to B2 from B1 and the second-lien senior secured credit facility to Caa2 from Caa1.

The outlook is stable.

Moody’s said the downgrade reflects the company's weakened credit metrics as a result of the downturn in its oil and gas end markets, as well as ongoing pressure in sales to its mining customers.

The agency anticipates SEI's leverage will remain elevated and estimate 7 times for fiscal 2016 ending in May (all numbers on a Moody's-adjusted basis). It also expects revenues and margins to further contract in that period.

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