Moody’s downgrades Sirva

Moody's Investors Service said it downgraded Sirva Worldwide, Inc.'s corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD. Concurrently, Moody's lowered its ratings on Sirva's senior secured first-lien credit facilities, revolver due May 2025, term loan due August 2025, to B3 from B2 and trimmed the rating on the company's senior secured second-lien term loan due 2026 to Caa3 from Caa2. The outlook was changed to negative from stable.

“The ratings downgrade and negative outlook reflect Moody's concern that Sirva's financial performance will remain challenged over the next 12-18 months as corporate relocation and moving volumes remain soft while the company's high-interest expense costs weaken its liquidity profile.

“Moody's concerns related to the company's credit quality are further exacerbated by Sirva's elevated debt leverage (Moody's adjusted debt/EBITDA of over 8x as of Sept. 30, 2023, more than 13x including securitization and mortgage warehouse debt) and growing uncertainty with respect to the company's ability to refinance its debt which substantially is set to mature in 2025,” the agency said in a press release.

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