Moody's downgrades Sorenson, loans

Moody's Investors Service said it downgraded Sorenson Communications, Inc.'s probability of default rating to D-PD from Caa2-PD.

The downgrade was prompted by Sorenson's announcement that it filed for Chapter 11 bankruptcy protection.

Concurrently, Moody's downgraded the corporate family rating to Ca from Caa2, the first-lien first-out revolver due 2014 to B2 from B1 and the first-lien second-out term loan due 2014 to B3 from B2.

The outlook is stable.

The B2 and B3 ratings on the revolver and term loan, respectively, reflect Moody's estimate that recovery will be very high for holders of these instruments. The rating on the first-out revolver benefits from its contractual payment priority relative to the second-out term loan at default, the agency said.

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