Moody’s downgrades SunSource

Moody’s Investors Service said it downgraded STS Operating, Inc.’s (SunSource) corporate family rating and senior secured first-lien rating to B3 from B2, the senior secured second-lien rating to Caa2 from Caa1 and the probability of default rating to B3-PD from B2-PD.

The downgrades reflect Moody’s expectation of weak fundamentals in the company’s energy and industrial end markets, exacerbated by the recent oil price shock and the coronavirus outbreak. These factors will negatively impact credit metrics, likely into 2021, and sustain the company’s financial leverage at elevated levels,” the agency said in a press release.

The outlook is negative.

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