Moody’s cuts High Ridge Brands

Moody’s Investors Service said it downgraded the corporate family rating of High Ridge Brands Co. to Caa2 from B3 and its probability of default rating to Caa2-PD from B3-PD.

The agency also downgraded the company's unsecured notes to Caa3 from Caa1.

The outlook is negative.

“The downgrade of the corporate family rating reflects meaningful revenue and earnings deterioration, including the loss of distribution for a number of products at Wal-Mart,” Moody’s said in a news release.

The agency said it also has growing concerns related to the sustainability of the company's capital structure given the High Ridge's very high financial leverage, and the risk that earnings will continue to fall over the next year.

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