Moody’s cuts SRAM, loans to B2

Moody's Investors Service said it downgraded SRAM Corp.’s corporate family rating, first-lien term loan and first-lien revolving credit facility to B2 from B1 due to its weak operating performance and concerns about its ability to access its revolver.

The outlook is stable.

"Debt/EBITDA is high at around 5.5 times and is expected to exceed 6 times in the next quarter or two," Moody’s senior credit officer Kevin Cassidy said in a news release.

While leverage will fall over time, it will remain above Moody's previous expectations and may restrict the company's ability to access the revolving credit facility.

"But we expect the company to maintain an adequate liquidity profile even without revolver access owing to cash on hand and our expectation of over $30 million of free cash flow in 2016," Cassidy added in the release.

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