Moody’s downgrades Hoover, loans to B3

Moody's Investors Service said it downgraded Hoover Group, Inc.'s corporate family rating to B3 from B2, probability of default rating to Caa1-PD from B3-PD and bank credit facilities to B3 from B2.

The outlook is stable.

"The rating downgrade reflects expectations of elevated debt levels in 2016 stemming from higher than anticipated capital investment in 2015 and expectations for potential weakness in new product sales," Moody's analyst Morris Borenstein said in a news release.

"While the rental side of the business is stable, there is increasing risk driven from its drilling and completion-exposed product revenues to more than offset."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.