Moody’s drops CRGT view to negative

Moody's Investors Service said it changed the outlook of CRGT, Inc. to negative from stable and affirmed all ratings, including the B3 corporate family rating.

The B2 first-lien debt ratings were also affirmed in anticipation of a pending facility amendment whereby the bank facility's term loan and revolver commitment will increase as CRGT merges with Salient Federal Solutions, Inc.

Moody’s said the negative outlook reflects continuation of CRGT's rapid growth through business combination with a lack of operating profit and low operational cash flow since 2011 – considerations that increase risk for creditors.

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