Moody's downgrades Tensar

Moody's Investors Service said it downgraded the corporate family and probability-of-default ratings for TCO Funding Corp. to B3 from B2.

The agency lowered the revolving credit facility due 2010 to B1 from Ba3 (LGD2, 26%) and first-lien term loan due 2012 to B1 from Ba3 (LGD2, 26%).

The action reflects weaker-than-expected performance and increased financial leverage, according to the agency.

The outlook was changed to negative from stable.

Moody's said the downgrade reflects its view that a reduction in near-term North American infrastructure spending and a volatile raw material pricing environment will continue to weigh on Tensar's operating performance into 2009.

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