Moody's cuts Awesome outlook to negative

Moody's Investors Service said it revised Awesome Acquisition Co., LP's outlook to negative from stable, while affirming all its current ratings including the corporate family rating of B2.

The change of outlook reflects Moody's expectation that Awesome's financial leverage and interest coverage would remain weak for the B2 rating over the intermediate term due to the negative pressure on revenue growth and profitability resulting from the recessionary economy, compounded by the high leverage deployed in the capital structure, the agency said.

Its key credit metrics, incorporating Moody's analytic adjustments, are weak for its rating, as evidenced by debt/EBITDA of 6.5x and EBITA/Interest of 1.2x in 2008.

Given the expected slowdown in revenue growth and EBITDA expansion against the backdrop of a deepening recession, such ratios are likely to remain weak within the rating horizon, the agency added.

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