Moody’s drops Greatbatch, loan, notes

Moody's Investors Service said it downgraded Greatbatch Ltd.'s (borrowing entity for Integer Holdings Corp., formerly Greatbatch, Inc.) corporate family and probability of default ratings to B3 and B3-PD from B2 and B2-PD, respectively.

The agency also downgraded the company's first-lien senior secured credit facility rating to B2 from B1 and its senior unsecured notes to Caa2 from Caa1.

The outlook is stable. The SGL-3 speculative grade liquidity rating was affirmed.

"Because Greatbatch faces industry-wide headwinds, deleveraging will be more difficult than we initially anticipated," Moody's senior credit officer Diana Lee said in a news release.

"As a result, Greatbatch is not likely to achieve leverage appropriate for a B2 over the next 12 to 18 months."

The downgrade also reflects further deterioration in the company's internal liquidity sources and expected tightening under its financial covenants, the agency added.

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