Moody's cuts SOLA senior notes to B1

Moody's Investors Service said it downgraded SOLA International Inc.'s unsecured 6.875% notes and senior unsecured issuer rating to B1 following the company's announcement it had closed its new secured bank credit facilities.

The outlook is stable.

Moody's said the downgrade reflects the now subordinate position of the unsecured notes resulting from the closing of the new secured bank credit facilities, which are secured by Sola's U.S. accounts receivable and inventory.

Moody's has confirmed the senior implied rating and assigned a definitive Ba3 rating to the secured credit facilities reflecting SOLA's strong market share within the lens industry and its improved debt protection measures from the closing of this transaction.

The ratings also take into account the highly competitive nature of the industry and the risk the company will write down additional assets.

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