Moody’s lowers Onsite Rental

Moody’s Investors Service said it downgraded to B3 from B2 the corporate family rating of Onsite Rental Group Pty Ltd.

The agency also said it downgraded the senior secured ratings on the term loan and revolving credit facility issued by wholly owned subsidiary Onsite Rental Group Operations Pty. Ltd. to B3 from B2.

The ratings also are on review for further downgrade, Moody’s said.

The downgrade reflects an expectation of a continued deterioration in Onsite Rental’s credit metrics due to an ongoing decline in mining and oil and gas construction activity, the agency said.

While the pace of residential, non-residential and infrastructure activity has improved, revenue from the company’s non-commodities sectors has not been able to mitigate the earnings declines from commodity-based resource construction sectors, Moody’s said.

The downgrade further considers an expectation of diminished covenant headroom, which challenges Onsite Rental’s liquidity position, the agency added.

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