Moody's: Termming outlook negative

Moody's Investors Service said it affirmed the Ba1.sk national scale corporate family rating of Termming, as but changed the outlook for the rating to negative from stable.

Moody's said the change reflects concern about Termming's ability to sustain key credit metrics after its weak profits last year and expectation that its aggressive debt-financed growth will continue this year.

Factors reflected in the ratings include the company's external debt after acquisitions and its capital spending for upgrades, its disproportionate personnel expenses and other operating expenses and the possibility that management could maintain its debt-financed acquisition strategy placing pressure on already weak leverage and coverage metrics.

The agency said that ongoing debt-financed acquisition activity, accumulating restructuring requirements and unfavorable weather conditions could weaken the company's ability to keep the debt-to-EBITDA ratio below 6 times.

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