Moody’s changes Q Holding view to negative

Moody’s Investors Service said it changed Q Holding Co.’s outlook to negative from stable.

“The change of outlook to negative reflects Moody’s expectation of a 25%-35% decline in revenue and a proportional decline in cash flow in the coming one to two quarters due to reduced demand for the company’s products. Approximately 44% of Q’s business revenues are focused on automotive and industrial markets that will see a material decline in demand due to the Covid-19 outbreak. The remaining 56% of revenues from the medical devices segment will be affected to a lesser degree but will still experience a temporary decline in demand,” Moody’s said in a press release.

Moody’s also affirmed the company’s B3 corporate family rating, B3-PD probability of default rating and the B3 ratings of the senior secured first-lien term loan and revolving credit facility.

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