Moody's changes Caliber trend to negative

Moody's Investors Service, Inc. said it changed Wand NewCo 3, Inc.'s (Caliber Collision) outlook to negative from stable. The agency also affirmed Caliber's ratings including the B3 corporate family rating and B2 first-lien term loan rating.

"The change in outlook to negative reflects Moody's concern that Caliber's revolver is going current in February 2023 and the challenging refinancing environment for highly-leveraged companies may prevent Caliber from receiving a timely extension from lenders under similar terms," stated Stefan Kahandaliyanage, a Moody's vice president, in a press release.

"In addition, while Caliber has raised prices and put other strategies in place to improve revenue and earnings generation, leverage remains very high at around 9x and interest coverage remains below 1x, thus Caliber needs to continue to make material progress in driving earnings growth for credit metrics to become more supportive of a B3 rating," added Kahandaliyanage.

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