Moody’s downgrades Augusta

Moody's Investors Service said it downgraded the corporate family rating of Oak Parent, Inc.'s, an indirect parent company of Augusta Sportswear Holdings, Inc., to B2 from B1.

The agency also downgraded the ratings on the company’s senior secured credit facilities to B2 from B1.

The company's probability of default rating was affirmed at B2-PD.

The outlook is stable.

“The downgrade reflects Augusta's weaker-than-expected operating performance, including declining revenue, EBITDA and free cash flow during the first half of 2017, which stem primarily from execution issues around the implementation of new selling strategies, along with manufacturing and working capital inefficiencies,” Moody’s said in a news release.

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