Moody’s downgrades Gruden, loans

Moody's Investors Service said it downgraded Gruden Acquisition, Inc.'s (Quality Distribution, Inc.) corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

The agency also downgraded the company's senior secured first-lien term loan to B2 (LGD3) from B1 (LGD3) and senior secured second-lien term loan to Caa2 (LGD5) from Caa1 (LGD5).

The outlook is negative.

Moody’s said the downgrade of the corporate family rating reflects the company's significant underperformance with respect to operating profitability and free cash flow generation relative to expectations at the time of the August 2015 leveraged buyout of the company by Apax Partners.

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