Moody’s downgrades PSAV

Moody’s Investors Service said it downgraded AVSC Holding Corp.’s (PSAV) corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD, its first-lien senior secured credit facility (revolver and term loan) to Caa2 from B2 and the ratings on the company’s second-lien term loan to Ca from Caa2. The ratings have also been placed under review for further downgrade.

“The downgrade to Caa2 and review reflects Moody’s expectation for severe deterioration in PSAV’s operating results and liquidity at least through June due to the coronavirus pandemic (Covid-19) that has already prompted a global shutdown of the meeting and events spaces. Moody’s expects significant cash flow deficits in the second quarter of 2020, which elevate default risk,” said Moody’s in a press release.

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