Moody's cuts Service Corp. to SGL-2

Moody's Investors Service said it downgraded the speculative grade liquidity rating of Service Corp. International to SGL-2 from SGL-1.

Moody's said the downgrade reflects the projected decline in cash and cash equivalent balances due to the expectation of likely share buybacks and a projected tightening of covenant cushions under the company's revolving credit facility.

The SGL-2 rating, however, reflects a good liquidity profile, with cash and cash equivalents on hand and projected cash flow from operating activities expected to exceed anticipated capital spending, debt maturities, dividends and funding of anticipated share buybacks in the next 12 months, Moody's added.

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