Moody's cuts Autocam probability of default to D

Moody's Investors Service said it lowered Autocam Corp.'s probability of default ratings to D from Ca.

Moody's said ratings on Autocam's senior secured first-lien facilities (Caa1) and senior subordinated notes (C) were confirmed although the expected loss rates on those issues has increased from the assumed higher probability of default.

The company's speculative-grade liquidity rating was also affirmed at SGL-4, the agency said, adding that the actions follow disclosure by Autocam in an 8-K filing that it had failed to pay interest on its subordinated notes on Dec. 15 and it had entered into a 30 day grace period under that obligation.

According to Moody's, the probability of default rating of D signifies an elevated risk profile flowing from the company's failure to make a payment when due under its subordinated notes.

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