Moody's downgrades Advanced Integration

Moody's Investors Service said it downgraded all of the debt ratings on Advanced Integration Technology LP, including its corporate family rating to B2 from B1, senior secured rating to B2 from B1 and probability of default rating to B3-PD from B2-PD.

The outlook was changed to stable from negative.

The debt ratings reflect a weaker and more volatile earnings and cash flow profile than anticipated, along with concerns around operational and financial execution that have significantly trailed expectations and resulted in a weakened credit profile, Moody's said.

The ratings also consider Advanced's modest size, relatively concentrated customer and platform base and its exposure to cyclical end markets, the agency said.

The company has a mixed track record of performance, much of which over the last two years can be attributed to losses in the non-core parts manufacturing business, Moody's said.

Partially tempering these issues is recognition of the company's growing portfolio of automation and engineering capabilities and expanded customer base, the agency said.

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