Moody’s downgrades Onsite

Moody’s Investors Service said it downgraded the corporate family rating of Onsite Rental Group Pty Ltd. to B2 from B1.

Moody’s also said it downgraded the ratings to B2 from B1 on the dollar-denominated term loan and revolving facilities issued by Onsite Rental Group Operations Pty Ltd. and Onsite US Finco LLC, both wholly owned subsidiaries of Onsite.

The outlook is negative.

The downgrades reflect the persistent weakness in the mining-services industry, which pressures profitability, Moody’s said.

The downgrades also consider Onsite’s inability to improve the non-mining related businesses, the agency said.

Operating conditions for companies serving mining companies also are expected to remain weak through 2016 as mining companies continue to focus on cost-savings programs in the current depressed price environment, Moody’s said.

Onsite also is heavily exposed to non-mining construction, which is exposed to the level of construction activity in the economy, the agency said.

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