Moody’s cuts Bumble Bee, notes

Moody's Investors Service said it downgraded Bumble Bee Holdings, Inc.'s corporate family rating and probability of default rating to B3 from B2 and to B3-PD from B2-PD, respectively.

As a result of this action, the company's senior secured notes due December 2017 were downgraded to B3 from B2 and its senior unsecured holdco PIK toggle notes were downgraded to Caa2 from Caa1.

The outlook was changed to negative from stable.

Moody’s said the downgrade primarily reflects a deterioration in the company's liquidity profile related to upcoming debt maturities in 2017, including the company's unrated $225 million ABL that is set to mature on June 15, 2017 and the company's $485 million 9% senior secured notes set to mature on Dec.15, 2017.

Refinancing concerns are exacerbated by an ongoing investigation by the U.S. Department of Justice (DOJ) into potential antitrust violations in the packaged seafood industry, the agency added.

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