Moody's: Viskase outlook negative

Moody's Investors Service said it lowered the outlook for Viskase Cos. Inc. to negative from stable.

Moody's said the change was because of higher-than-expected interest expense with Thursday's pricing of its $90 million senior secured note due 2011 at 11.5% and the resulting adverse affect on its already modest free cash flow relative to its sizable total adjusted debt.

The negative ratings outlook also reflects reduced EBITDA less capital expenditures coverage of interest expense to somewhere closer to 1 time than 2 times during the intermediate term.

Moody's rates Viskase's new $90 million 11.5% senior secured notes due 2011 at B2, speculative grade liquidity rating at SGL-2, senior implied rating at B2, and senior unsecured issuer rating (non-guaranteed exposure) at Caa1.

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